Over The Past 6 Years, The Loss Of Over 1 Billion 400 Million Bees Or Lotus Will Be Privatized.

For supermarkets, 2019 seemed particularly difficult. In June 19th, the listing of retail companies on the Hong Kong stock market was announced. In June 18th, the offeror C.P. Holding (BVI) Investment Company Limited asked the board of directors to make recommendations to privatize the company, which would involve the implementation of the common stock plan to cancel the planned common stock and to pay common shares to the common shareholders of the planned common stock, and to withdraw the common shares listed on the stock exchange. At the cost, it could receive HK $0.11 in the cancellation of the planned common shares, and the premium would be 10% higher than the closing market price.

According to the CPS plan, the plan CPS will be cancelled, and at the cost, the CPS holders of each plan will have the right to charge the CPS cancellation price, so that they can receive cash of HK $0.11 on the cancelled share plan CPS.

Assuming no CPS conversion to common stock before the planned date, the cash requirements for the common stock plan and the CPS scheme are approximately HK $425 million and about HK $400 thousand respectively.

After the proposed implementation, the offeror and Charoen Pokphand Group intend to arrange for the company to continue its current business. The announcement shows that the party C.P. Holding (BVI)) Investment Company Limited is wholly owned by the controlling shareholder of the company.

After the common stock scheme comes into effect, the common stock is expected to be listed on the stock exchange and will be withdrawn. The company will apply to the SEHK to withdraw its common stock on the stock exchange after its entry into the common stock plan.

Behind the fate of the lotus or privatization is a continuous loss.

According to the 2018 annual report of Bu bee lotus, as of December 31, 2018, the operating income of Bu bee lotus was 10 billion 122 million yuan, an increase of 4.84% over the same period last year, but its net profit was -2.88 billion yuan, down 261.06% from the same period last year. Meanwhile, in 2012 -2016, the continuous loss of lotus flower was over 1 billion 100 million yuan. Since then, the bee lotus has lost its profit in 2017, and realized a net profit of 179 million yuan, but it did not last long. In 2018, it again met with a loss. Over the past 6 years, the lotus has lost more than 1 billion 400 million yuan.

Facing the pressure of profit, the bee lotus had to cut down personnel to reduce costs. According to the information disclosed, the total number of employees in 2018 dropped by nearly 1000. At the end of 2017, the total number of employees was 11870, of which 1185 were headquarters and 10685 were stores. At the end of 2018, the total number of employees was 10900, of which 1400 were headquarters and 9500 were stores.

Under the new retail trend, the bee lotus has also made new exploration. In the first half of this year, bu bee lotus tested a 24 hour convenience store in Beijing, with an area of less than 100 square meters. In addition to packaged food, beverages, daily necessities and Guandong cooking, there are also large freezers, pork and willow frozen food freezers, as well as scattered fruits and vegetables. However, in the face of fierce competition, the 24 hour convenience store did not arouse too much spray.

In fact, as early as 4 years ago, the parent company of Chia Tai Group, the parent company of lotus flower, has launched an attempt to launch a new type of store. Nowadays, there are no less than 40 stores in the country. However, in the past few years, the reputation of Zhengda good fresh is generally not able to stop the declining performance of the company.

According to public information, lotus is originally called Thailand Lotus supermarket. In 1997, lotus flower opened its first store in Pudong, Shanghai. After more than 20 years of development, the bee lotus has 83 stores in the mainland. What will be the future of the bee lotus in the unpredictable retail market? Win business network will continue to pay attention.