Gome Retail Intends To Buy 585 Million Yuan 19.5% Equity Interest In Logistics

In recent days, Gome retail announced that in August 16, 2019, the company entered into an agreement with the seller, Rocket Gain Investments Limited, which acquired a 19.5% stake in the Target Corp from the seller at a cost of 585 million yuan.

Notice shows that the Target Corp is Beijing Peng run times Property Management Co., Ltd., which owns all the shares of Gome logistics, while Gome logistics owns all the equity of annex logistics. An Xun logistics has 11 wholly-owned Affiliated Companies as the national integrated logistics service provider. Its main business is warehousing management, trunk transportation, comprehensive delivery, installation and after-sales service, providing customers with one-stop comprehensive logistics solutions including large household appliances, home furnishing, home appliances, sports equipment, 3C products and fast moving consumer goods.

According to the announcement, Target Corp's profit after tax in 2017 and 2018 was 42 million 410 thousand and 19 million 310 thousand yuan respectively.

According to Gome retail sales, an Xun logistics group is the main logistics service provider of the group, and is engaged in the fast developing logistics industry. Its warehousing and logistics services cover 31 provincial administrative districts with good prospects for development. In view of the logistics service and the ability to provide timely delivery services to customers as a key part of the group operation, the directors believe that the acquisition will provide direct interests of the group in its main logistics service providers, and promote further cooperation between the group and annex logistics, so as to ensure that security logistics can provide better services to the group.