IKEA Shanghai may have major equity changes recently

Due to a 57% decline in profits in 2009 , a major shareholding change is about to occur in the furniture and household goods chain IKEA (IKEA), which maintains only one store in Shanghai for more than 10 years.

A few days ago, IKEA operator Shanghai Shenrui Furniture Co., Ltd. ( hereinafter referred to as " Shenrui Furniture ") listed to transfer 40% of the shares, and the transferor was Shenrui Furniture's Chinese shareholder Shanghai International Group Asset Management Co., Ltd. ( hereinafter " Shanghai International Group ") The transfer price is RMB 49,387,731 , and the deadline for listing is May 7 .

Shenrui Furniture was established in 1997 by IKEA Development Co., Ltd. and Shanghai International Group, with a registered capital of 6.1 million US dollars. IKEA Development holds 60% and the remaining 40% is held by Shanghai International Group. Since Shanghai IKEA business, Shen Rui furniture store and then did not expand in Shanghai, but so far the country has only eight stores, which is the same as the foreign brands of furniture chain B & Q is far, at present, there are 40 B & Q business in China Yujia store.

Industry insiders believe that the 40% stake held by Shanghai International Group as a state-owned asset may be related to the decline in IKEA's performance in 2009 . "First Financial Daily" learned from the listing announcement of the Shanghai United Property Exchange that compared with 2008 , the net profit of Shanghai IKEA in 2009 decreased by 57% .

According to the announcement, Shen Rui furniture in 2008 operating income of 958.87 million yuan, operating profit of 59.63 million yuan, net profit of 44.87 million yuan, and by 2009, its operating income fell to 515.4 million yuan, a decline of more than 46%, while The operating profit was reduced to 23.2 million yuan, a drop of up to 61% , and the net profit shrank to 19.52 million yuan, a drop of up to 57% . At the same time, Shenrui Furniture currently has a total debt of 144.89 million yuan.

Yesterday, Shanghai IKEA told reporters that it was not very clear about the share transfer. At present, the company is operating normally.

The reporter learned in the interview that the competition in the home furnishing chain market has been fierce, and IKEA has always had bottlenecks such as high store opening costs and unacceptable categories in its operation. At present, IKEA has about 8 stores in China, and large-scale chain companies need scale, compared with more than 40 stores in B & Q. IKEA has no advantage in scale, so many costs cannot be reduced. In 2003 , IKEA had stated that to achieve profitability in China, IKEA may need to open up to 30 stores. From the current point of view, IKEA is still far from this goal.

At the same time, IKEA ’s store opening costs are also high in the industry. For example, B & Q stores generally have more than 7,000 to 10,000 square meters, and B & Q, which has also experienced operating pressure, has launched a "T plan " to improve its performance. Once shrinking stores from more than 60 to more than 40 , in the fourth quarter of 2009 , B & Q China's performance increased by 29.2% year-on-year. However, an IKEA store has an area of ​​tens of thousands of square meters, which is several times that of competitors. The rent, personnel and management costs are huge, and IKEA does not directly lease properties like its peers. Instead, it has to build its own shopping mall in the leased area. In order to unify the image of IKEA, this has virtually increased the cost.

In addition, IKEA has always faced an embarrassment. In Europe and the United States, IKEA quickly occupied the market by providing products for low- and middle-income groups. After entering China, IKEA was considered to be a mid-to-high-end consumer brand for white-collar workers.

" There are also products. " An industry source who has been operating a home furnishing chain for a long time revealed that most of its peers mainly sell finished products, and there will be different delivery. IKEA is still used in the European model and still needs to be sold in China. It is not in line with the traditional furniture consumption philosophy of most Chinese people to build furniture by hands. Therefore, although there may be a lot of people in the IKEA store, the proportion of real effective buyers may not be as high as the industry.

The announcement also revealed that IKEA Development BV , the foreign shareholder of the target company. By stating not to give up the preemptive right, it does not exclude the possibility that IKEA will take a wholly-owned stake in the Shanghai project.

Schedule _ IKEA past two years, mainly financial data (units / million)

Source: Shanghai United Property Exchange

2009 operating income       operating profit       Net profit

51540.433664 2320.738237 1951.711500

total assets      Total liabilities        Owners' equity

16931.879307 14489.192611 2442.686696

2008 operating income       operating profit       Net profit

95887.645544 5963.567795 4487.371027

total assets       Total liabilities       Owners' equity

29242.677555 28751.702359 490.975196

2010-02-28 Operating income       operating profit      Net profit

16445.828388 2118.305839 1422.248128

total assets       Total liabilities       Owners' equity

17496.071683 10200.228125 7295.843558

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