Gu'S Home Furnishing Chairman Was Put On File For Investigation: What Will Happen To The Home Furnishing Giant When It Comes To The Past Of Acquisition?

On December 24, Gu Jia household Co., Ltd. (hereinafter referred to as "Gu Jia Jia Jia") announced that Gu Jiangsheng, chairman of the board of directors, was investigated by the CSRC for being suspected of insider trading in stocks.

Gu Jiajia said that the investigation is an individual investigation of Gu Jiangsheng, mainly involving the transaction of Xilinmen shares through the secondary market in the process of purchasing Xilinmen home furnishing Co., Ltd. from 2018 to 2019. On December 25, Gu's home furnishing opened at a low 9.99% in the early trading, approaching the limit, and then the decline narrowed slightly. By the end of the day, its share price fell 4.62%, with a price of 70.64 yuan / share and a market value of 44.7 billion yuan.

A person from a smart home industry in South China told the 21st century economic reporter that the early epidemic has hit the whole household industry to a certain extent since this year. Although the recovery in the second half of the year is obvious, the competition in the whole industry is very fierce in the long run, and accelerating the integration will become a long-term trend.

"Empty contract"

According to the public information, gujia home was founded in 1982, specializing in the research, development, production and sales of guest restaurant and bedroom home products. In October 2016, Gu Jiajia was listed on the Shanghai Stock Exchange A-share with an issue price of 29.59 yuan / share. In the following four years, the stock price of gujia household rose all the way, reaching a new high of 121.59 yuan / share on November 20 this year, which was 4 times of the stock price at the time of listing. Nowadays, gujia group has become a household enterprise with nearly 20000 employees and more than 10 billion scale. It has more than 6000 brand stores in the world, and its products are sold to more than 120 countries and regions. Gu Jiangsheng's personal wealth also rose to 28.5 billion yuan.

The investigation of the chairman of the board is mainly related to the past of the acquisition.

On October 15, 2018, Gu Jiajia disclosed the letter of intent on equity transfer, and said that on October 14, Huayi investment, the controlling shareholder of Xilinmen, intended to transfer no less than 90.8173 million shares of Xilinmen shares held by it to Gu Jiajia at a price of no less than 15.2 yuan / share, with a total transaction price of no less than 1.38 billion yuan. After the completion of the transaction, Gu Jiajia will hold no less than 23% equity of Xilinmen, becoming the largest shareholder of Xilinmen, and the actual controlling person of Xilinmen will be changed.

During this period, the two sides continued to promote the transaction. On October 26, 2018, Gu Jiajia announced that Gu Jiangsheng, the actual controller of the company, and Li Donglai, Xu Tanhua, Xu Yonghai, Ningbo gujia investment and jiahuitong signed the agreement on acting in concert on October 8, 2018, and all parties reached an agreement on the acquisition of Xilinmen: all parties intend to purchase no more than 30% of the equity of Xilinmen through secondary market purchase, agreement transfer, etc Among them, no more than 5% shares of Xilinmen will be purchased through the secondary market. On January 26, 2019, Gu Jiajia and Li Donglai, acting in concert, increased the holding of Xilinmen's total equity by 4.84% in the secondary market.

However, six months after the announcement, the two companies did not complete the actual transaction. On April 14, 2019, gujiajiajia and Xilinmen both announced that after the expiration of 6 months, the letter of intent for equity transfer signed by Shaoxing Huayi investment and gujiajia home furnishing, the controlling shareholder of Xilinmen, will automatically terminate.

At that time, Gu's acquisition of Xi linmen's equity was well received by both domestic and foreign companies.

However, at that time, the capital of Gu Jia home was not abundant, and it was facing the bottleneck of slowing down the growth rate of performance. In the first three quarters of 2018, the growth rate of the company's operating revenue and net profit decreased by 35.29% and 43.67% respectively year-on-year.

In 2018, gujia group, which actually controls gujia home furnishing, pledged nearly 50% of its shares, with a pledge rate of 54.53%. However, as of April 12 of that year, the closing price of Xilinmen was about 13 yuan / share, which was far from the price of no less than 15.2 yuan / share in the letter of intent. If the transaction was concluded, it would mean that Gu Jiajia was paying a high premium to purchase Xilinmen. Then, for the family home which is not well off, this transaction will certainly increase its financial burden.

It is worth mentioning that after the news that Gu Jiajia will purchase some shares of Xilinmen, the stock price of gujia home rose 30%, while that of Xilinmen only rose 11%. Coupled with financial problems and high premium acquisition, there is speculation that the home is not willing to buy. During this period, Huayu, a major shareholder of Xilinmen and founder of the brand, controlled Huayu, which solved the risk of stock explosion when signing the contract six months ago. Therefore, the market also appeared happy not to sell the voice.

However, both parties did not clearly explain the reasons for the termination of the transaction, but only gave the following reasons: "since the signing of the letter of intent for equity transfer, the two sides have carried out many in-depth exchanges and negotiations on the details of cooperation. However, due to the influence of subjective and objective conditions during the negotiation process, the two sides failed to reach a consensus and sign a formal transfer agreement before the expiration of the term of intent This letter of intent is automatically terminated. "

In addition, the mortgage ratio of home furnishings has always been a problem.

Major shareholders repeatedly reduce their holdings

According to the third quarter report, the business income of the first three quarters was 8.54 billion yuan, a year-on-year increase of 9.9%; the net profit attributable to the shareholders of the listed company was 1.01 billion yuan, up 10.1% year-on-year. The basic earnings per share is 1.69 yuan. However, due to the rapid expansion of the company's debt pressure is increasingly apparent.

Since the beginning of this year, the company's shareholders have continued to reduce their holdings. Gujia group, the largest shareholder, and TB home, the second largest shareholder, have reduced their holdings of gujia home for many times, and the cash has exceeded 5.7 billion yuan.

From July 23 to 24, gujia group reduced 9.8 million shares of the company through block trading, accounting for 1.62% of the company's total share capital; TB home reduced 2.2828 million shares of the company through block trading, accounting for 0.38% of the company's total share capital. On September 24, gujia group reduced its holding of 32 million shares of gujia home appliances by agreement, accounting for 5.06% of the company's total share capital. On November 16, TB home reduced its holding of 31.7 million shares of gujia home by agreement, accounting for 5.01% of the company's total equity.

Moreover, in July this year, due to the equity transaction problems between gujia investment and Dexing company, gujia investment planned to transfer 100% equity of its Linyi gujia real estate to the latter. However, after Dexing company paid off the balance of the transfer, gujia investment did not change the remaining equity in time. Some of the company's shares held by its controlling shareholder gujia group were frozen, and then the actual controller Gu Jiangsheng It is classified as restricted consumption personnel.

In fact, the domestic home furnishing industry in this year ushered in an explosive development, set off a number of "hot listing.".

In January and June of this year, Zhejiang securities regulatory bureau announced the guidance filing of Zhejiang Botai Furniture Co., Ltd. and Hangzhou pan Ya Sanitary Ware Co., Ltd. In September, the Guangdong securities regulatory bureau announced that it had registered with Guangdong Huangpai Custom Home Group Co., Ltd. and mousse healthy sleep Co., Ltd. On September 28, the Shanghai Securities Regulatory Bureau announced the basic information of the counseling and filing of shuxiangmendi (Shanghai) aesthetic home Co., Ltd. On November 4, Guangdong securities regulatory bureau announced again that it had handled the registration of guidance for Wrigley household Group Co., Ltd. On November 16, Chongqing Securities Regulatory Bureau announced that it had handled the registration of counseling for MAG home furnishing Co., Ltd. On December 10, HuiSen household passed the listing hearing of the Hong Kong stock exchange, and the landing of Hong Kong stock was imminent. Not only that, the furniture industry "listing fever" is expected to continue to next year, it is reported that Mengtian home furnishing and other companies are preparing for the listing of a shares next year.

In recent years, the increase of residents' income and the upgrading of consumption have brought new growth points for the home furnishing industry. The new retail mode of online and offline integration, digital integration and industrial chain integration has become the new direction of the development of the home furnishing industry. The whole market presents a positive development trend. Not only that, the outbreak of the epidemic at the beginning of the year has accelerated the process of actively seeking changes in the home furnishing industry. The development of live delivery with goods has promoted the sales of home furnishing products. Technology product companies, real estate enterprises, Internet giants, etc. have also laid out the home furnishing industry. Cross border development and advantage integration have become a trend. With the gradual maturity and popularization of 5g and artificial intelligence technology, smart home decoration has become a hot word of the year.

It is not difficult to find that although there are problems such as loss, false propaganda and excess supply in the industry's internal branches, the household enterprises are in a strong momentum, the industry leaders are constantly seeking innovation, and the latecomers are catching up with each other and actively embracing the digital transformation, and the industry reshuffle continues to intensify.