Chinese electronics retailer Suning has published a report which states that it will issue no more than 200 million new non-public shares at the price of at least CNY15 per share to finance CNY2.8 billion for eight new projects.
Of the total, shares valued at CNY250 million to CNY350 million will be acquired by Zhang Jindong, chairman of Suning, and these shares should not be traded in the market or transferred during the following 36 months after the finish of the issuance.
According to Suning, the financed capital will be invested in eight projects of three major kinds, totaling CNY3.315 billion. In detail, the company will use CNY1.4 billion to develop 250 chain stores across China, increasing its chain store area by 979,800 square meters; it will use CNY1.01 billion to set up new distribution centers in Chengdu, Wuxi, Chongqing, Tianjin, Xuzhou, and Beijing; and it will add CNY390 million to its liquidity.
Public statistics show that Suning is one of the largest home appliances and consumer electronics retailers in China. By March 31, 2009, the company had opened 819 chain stores in 181 Chinese prefecture-level or above cities, operating a total store area of about 3.525 million square meters. During the first quarter of 2009, the company made revenue of CNY12.658 billion and realized net profit of CNY475 million.
