Not affected by the negative impact of Gome and Yongle merger finally completed

GOME Electrical Appliances Holdings Limited (0493.HK, hereinafter referred to as the "United States") the merger of the China Paradise Electronics Retail Limited (0503.HK, hereinafter referred to as "Yongle") of the progress degree, has always been the focus of the industry recently, there are many speculation. The two sides last night with things finally settled.

Yesterday, 20:00, the United States and the United States announced the joint Wing Lok, the United States and the United States and the acquisition of Yongle yesterday has met all the prerequisites, the two sides finally successfully completed the merger. Yongle in the Hongkong Stock Exchange listed shares will be suspended on November 16th, and is expected to end next year January in Hongkong stock exchange delisting, will become a wholly owned subsidiary of Gome Yongle after delisting.

Gome spokesman He Yangqing told the "First Financial Daily" said that the new group will double brand operation after the merger, the United States to complete the national network layout in the last year, the development strategy has changed from "the first" to "the first region". The total number of Gome and Yongle stores has reached 800, the annual sales capacity of nearly 80 billion yuan, after the merger, the new group will continue to consolidate its dominant position in the domestic market, with more than a year, by the end of next year to complete the number of stores exceeded 1000, the annual turnover exceeded 100 billion yuan in the development plan, to enter in 2008 the world's top 500.

"Improving vendor relationship" will be the first thing after the merger of the new group efforts, He Yangqing introduced to the new group will take to promote manufacturers to develop measures to improve relations with manufacturers, manufacturers reduce the cost of unnecessary investment, "where is the key to solve the relationship between manufacturers."

Some of the important measure is: the new group will be gradually transformed into the factory sales sales business, thereby reducing the terminal manufacturers over the participation of the high cost of inputs; the new group will integrate the current manufacturers scattered logistics, warehousing costs, logistics and warehousing inventory excessive dispersion decreased, thereby improving commodity turnover frequency provide accurate information; terminal, scientific assist upstream manufacturers R & D and production plan; through the refinement of management, accelerate the circulation of commodities, utilizing cash flow, shorten transaction time, reduce the transaction cost; the new group change from the "price war" to "value war", with the core technology and support China intellectual property rights of enterprises and products, for example, with independent intellectual property rights of the national industry standard EVD HD DVD player.