Relying on professional managers to move to the capital market, Chen Fashu, which wanted to achieve greater wealth accumulation, did not want problems to appear one after another, but the department store industry, which helped itself to make a fortune, has been busy for years, and now they have begun to prepare for the winter.

this privately-run department store, which once had a market value of 11 billion yuan, is going down the peak, and has been busy for shell preservation for years. This year, it has been preparing for the winter since the first half of this year.

being inquired for two years in a row, and closing 19 stores to protect the shell

On the evening of May 3rd, the Stock Exchange sent a 14-question inquiry letter to Xinhuadu, asking for clarification on the company's continuous negative net profit after deducting non-profit in recent five years, and responding before May 21th.

In fact, almost the same question and sending time were staged last year, but the date was changed from 2113-2117 to 2114-2118. In other words, Xinhuadu has been in a downturn for six consecutive years.

from 2113 to 2117, the net profit of Xinhuadu was-225 million yuan, 32 million yuan,-374 million yuan, 54 million yuan and-52 million yuan respectively, and the non-net profit was-71 million yuan,-18 million yuan,-365 million yuan and-21 million yuan respectively. The Shenzhen Stock Exchange sent a letter in this regard.

the performance has been sluggish for years, and it has been inquired by the regulatory authorities. If it continues, the result is self-evident.

in 2118, Xinhuadu turned losses into profits, achieving a total operating income of 6.85 billion yuan and a net profit of 17.1149 million yuan. This achievement is the result of the company's third disposal of assets in six years. In September last year, 91% equity of a wholly-owned logistics subsidiary was transferred, and the investment income was 27.33 million yuan, which enabled the company to achieve a year-on-year growth of 1.21%. However, the net profit after deducting non-return to the mother was-14.228 million yuan, and the cash flow from operating activities was-67.7625 million yuan, so Xinhuadu was inquired again.

Xinhuadu, whose full name is Xinhuadu Shopping Plaza Co., Ltd., is the first local private enterprise of the Department Store Business Association in Fujian. It has supermarkets (including neighborhood gatherings), department stores, sports, seafood fairs, long-term love and e-commerce, etc. Its main business scope covers clothing, daily chemicals, fruits and vegetables, cooked food, electrical appliances and other commodities needed for daily life, as well as providing services such as catering, entertainment and digital marketing. The business layout is extensive, and the market value once reached 11 billion yuan.

In 2118, the company succeeded in protecting the shell again, but it didn't cure the symptoms. Now the company has started to save itself for 2119.

Xinhuadu closed its stores for the largest time since its listing in the first quarter of this year, reaching 19 stores, including 18 in Fujian Province and 1 in Jiangxi Province. The longest operating life has been more than 11 years, and the shortest is only about 1 years.

On May 3rd, Xinhuadu plans to repurchase and cancel 2,912,511 shares of 7 incentive objects who have left the company and restricted shares whose first period of lifting the restricted sales did not meet the conditions for lifting the restricted sales. After the repurchase cancellation is completed, the total share capital of the company will be reduced from 691 million shares to 681 million shares, and the registered capital will be reduced from 692 million yuan to 689 million yuan. The latest market value of the company has only shrunk to 4,128 billion yuan, ranking fifth among the nine listed private supermarkets.

Embrace the thigh for transformation

Unlike Kangmei Pharmaceutical, Xinhuadu frankly admits its own problems.

In last year's reply, Xinhuadu replied: The competition in the retail industry is becoming more and more fierce. In the face of great changes in industry technology and business model, traditional retail enterprises are constantly encountering bottlenecks, and the company is actively seeking business transformation.

The traditional retail industry has indeed entered a bottleneck period. According to the statistics of Foresight Economist, the growth rate of the total revenue of the traditional retail industry has been declining since it reached a peak of 31.2% in 2111, and the growth rate in the first half of 2118 was only 1.6%.

Xue Jianxiong, a senior real estate person, told Qi Qijun that leisure and children's education have become the mainstream of business soliciting, driven by the overall development of e-commerce and society. However, Xinhuadu, which has been learning the American business model, has been impacted by e-commerce, so Xinhuadu needs to transform and find new ways.

Xinhuadu has been seeking the road of transformation in recent years, and there are many well-known enterprises like Ali.

In 2113, Xinhuadu started its transformation with the dual main business model of "real estate+retail", and acquired 19.5% shares of two holding real estate subsidiaries of Xinhuadu Group. In 2115, the company acquired three liquor e-commerce operation services for 761 million yuan; In 2117, the company cooperated with Ali to promote the development of Boxma Xiansheng in Fujian market. In addition, Xinhuadu also has cooperation with JD.COM. These names basically appear in this inquiry letter.

cooperation with a well-known e-commerce company like Ali has not reversed Xinhuadu. "In the cooperation, Ali is a platform vendor, mainly responsible for the diversion work, and basically does not provide support in operation. As for the unsuccessful diversion, it depends on the product and product strength." Dennis Huang, co-founder of Xiezong Strategy Management Group, told Singularity Jun: "Fresh food is more difficult to do, and transportation and promotion need to be reconsidered and planned, otherwise the effect will be average."

A series of transformations are hard to say successful. On April 24th, Xinhuadu announced its performance forecast, predicting that the net profit attributable to shareholders of listed companies from October to June 2119 will be-91 million to-51 million, with a year-on-year change of -1382.97% to -812.76%, and the average net profit growth rate of the retail industry will be 68.47%. The closure of stores at the beginning of this month was also mainly due to long-term losses and no hope of turning losses into losses.

Dennis Huang thinks that the transformation of some traditional retail options like Xinhuadu and e-commerce cooperation may not have a good effect, but mainly depends on changing the sales content or expanding into other fields.

Ouyang Jie, vice president of Xincheng Holdings, told Qi Qijun: "Only increasing investment in spiritual consumption is the only correct way for business to continue to develop."

Chen Fashu

Company has been listed for ten years, but it has been struggling to protect its shell for six years, and the transformation is hard to see improvement. People can't help asking who is the boss behind Xinhuadu, and what has he been doing in recent years?

Zijin Mining, Tsingtao Brewery, Yunnan Baiyao and many other industries are all related to Chen Fashu, the actual controller of Xinhuadu, which may have solved half of the above questions for you.

More than 31 years ago, Chen Fashu, who was engaged in timber business, listened to the guidance of a Taoist priest, and turned to department store business, where he became the richest man in Fujian Province.

Taoist priests mentioned in their guidance to Chen Fashu that it was not limited to "wood" investment. Chen Fashu, who has accumulated a lot of original capital in the department store industry, is no longer satisfied with his investment in the department store industry. In order to realize his grand plan, Chen Fashu, who has not studied for a few years, invited Tang Jun, the "working emperor", with 1 billion yuan.

Tang Jun said that he would help Chen Fashu become "China Buffett". After that, Chen Fashu, the chairman of Xinhuadu Group, cashed in Zijin Mining, took shares in Tsingtao Brewery and Yunnan Baiyao, and had a great time.

The good times didn't last long. Tang Jun's academic qualifications and professional qualifications were falsified, and the equity disputes between Chen Fashu and Yunnan Baiyao came out one after another. The latter is called "the biggest equity dispute case in China" by the industry since the founding of New China.

Chen Fashu, who bought Yunnan Baiyao for the first time in 2119, didn't acquire 51% equity of Baiyao Holdings for 25.4 billion yuan until early 2117, and in July 2118, he became the chairman of Yunnan Baiyao. After the dust settled on the acquisition of Yunnan Baiyao, Chen Fashu once told the media: "I almost sold or mortgaged all the assets under my name".

I thought that after the resolution of the Yunnan Baiyao incident, Chen Fashu could be the chairman of Yunnan Baiyao with peace of mind and wait for the overall listing of the company. Unexpectedly, in the second half of 2118, during the listing period, Yunnan Baiyao was caught in a storm of "stopping bleeding", its performance hit a 23-year low, and it was beset with negative news and fell into a "middle-aged crisis".

Chen Fashu, relying on professional managers to move to the capital market, wanted to achieve greater wealth accumulation, but did not want problems to appear one after another. Now, the department store industry, which helped itself to make a fortune, has been busy for years. At this time, they have begun to prepare for the winter.

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