Chen Xiao Said For The First Time: Gome Will Not Return To The "Wong Kwong Yu" Era.

After Wong Kwong Yu and his wife suddenly voted against the non executive director of Bain investment, and the first instance of the Wong Kwong Yu case came out, the chairman of Gome and Chen Xiao, chairman of the board of directors, remained silent.

But Chen Xiaojian decided that a series of practices of large shareholders would harm the interests of listed companies and decided to stand up and show their attitude.

At noon on June 24th, Chen Xiao, an office in Shanghai Gome division, told the newspaper reporter, "my personal feelings with Huang Zong are very good, but between emotion and reason, I must choose the latter between Huang's personal interests and company interests."

In Chen Xiao's view, although Wong Kwong Yu, who has resumed contact with the outside world in the past half a year, has made many obvious adverse actions to the listed companies, and the possibility of similar events will not be ruled out for some time, but the Gome management group, which has been tested for nearly 20 months (from the beginning of the arrest of Wong Kwong Yu in November 2008), has reached unprecedented consistency and is capable of facing any possible crisis.

Chen Xiao told our reporter that "from the current situation of large shareholders, it is no longer suitable for continuing to play a leading role in listed companies, and the situation that the board of directors and management control the company have been established."

Not going back to 20 months ago.

"Huang has been in trouble for nearly 20 months. The management team, strategic thinking and strategic objectives of the company are all very clear. The status quo is the status quo. Gome will never return to the situation where Huang is still in the market 20 months ago, though it does not meet the personal emotional will of the major shareholders."

Chen Xiaoru said.

At the end of last year, after the Wong Kwong Yu case entered the judicial process, Wong Kwong Yu, who had been isolated from the outside world for more than a year, finally learned from the outside world the change in the past year. After learning that Bain had invested in Gome, it did not recognize the choice of Gome management. It started a series of actions from the beginning of this year.

Since February this year, when Wong Kwong Yu and his lawyers communicate with lawyers, they have been trying to draw a conclusion from GOME, which has drawn a line from the crime of bribery. In May this year, in the absence of some institutional investors, the voting rate was less than 60%. Wong Kwong Yu voted against the 3 non-executive directors submitted by Bain by his agent at Gome's shareholders' meeting.

After Wong Kwong Yu decided to appeal last month, he gave up the appeal for bribes to Gome. Chen Xiao said, "the case of the major shareholder was still under trial. The stronger the correlation with the listed company was, the better the lawsuit would be, but the result was not so."

He also said, "we note that Gome now has the following

Beginning in 2009, Gome management, headed by Chen Xiao, began to seek Gome's way out of the crisis, including the introduction of financial investors. Eventually, Bain invested in Gome's shares in August last year, but the shares did not affect the status of Wong Kwong Yu's largest shareholder.

Chen Xiao said, "going to Wong Kwong Yu is the inevitable choice for Gome to get out of the crisis. But we took the interests of major shareholders into account and chose to give up partly when we could get more investment from Bain, but now it seems that Huang Zong does not appreciate this."

Wong Kwong Yu's agent not only participated in Gome's shares in the 1990s, but also made a sudden difficulty at this year's annual general meeting. Wang Junzhou, vice president Wei Qiuli, who was previously regarded as deputy agent of Wong Kwong Yu, also stood on Chen Xiao's side.

He Yangqing, vice president of Gome, said, "Wang Zonghe and Wei Zong signed some legal documents instead of Huang Zong. It is only a period of time after Huang's accident. Since then, none of Gome's management representatives has represented a person, and all of them are for the benefit of the company. When the interests of the company are damaged, the management will not consider only the major shareholders.

The shares can be diluted by issuing additional shares.

Although this year's May "forced the palace" failed, but the industry generally guessed that Wong Kwong Yu, a stubborn personality, might make a "fish die" behavior. For this reason, Chen Xiao said, "we believe that everyone will return to reason for the sake of common interests, but even if the worst comes to the worst, the fish may die. The net will not be broken because the Gome has already passed the most dangerous time in the past 20 months."

Wong Kwong Yu, who questioned the outside world, may take the right to use the trademark and more than 300 stores that are not listed. Chen Xiao said, "these are not problems. For Gome, the most valuable part is the network and management team."

For the big shareholders who had promised to consider whether the more than 300 stores would be independent before the end of 2011, Chen Xiao said that for Gome, buying this part of assets is the same as buying other businesses. As long as the price is right, we can make a move on the premise of conforming to the interests of the company, while Gome's current capital scale can fully support this paction.

He also said, "because the listed and unlisted stores are managed by a team, like a conjoined baby, if forced cutting, the result may be a good living, while the other is rapidly weakening and not divided, so we can take care of each other."

For the possible way of trading, Chen Xiao said, "we will not accept the way of equity and will definitely take cash pactions. As a result of related pactions, the majority shareholders do not have the right to vote on this issue, while other shareholders and management will decide the trading mode and price according to rational judgment."

But the paction also requires approval from the Ministry of Commerce and other departments. Chen Xiao said: "government will is also very important. From a government perspective, a person convicted of economic crime wants to regain control of influential listed companies such as Gome. Obviously, the government will not allow it to happen."

For the possible future situation, Chen Xiao said, "although the possibility of a personal investor will not be eliminated again in the future, Gome will have to complete a process with its demarcation line, but the board of directors of Gome has made preparations, but at the moment, considering the emotional accommodation of Huang, we do not want to break it."

He also pointed out that "from the board of directors, we have the ability to deal with any crisis and challenges that Huang brings. We can dilute the shares and let them out, but we do not want to do that now."

However, he stressed, "judging from the current situation, the outcome of Wong Kwong Yu's second instance should not change much, so the situation that the board of directors will take control of the situation for a long time will continue."

Gome's new plan

Although Wong Kwong Yu's future has not yet come out, Chen Xiao's board of directors and management obviously prepared well, and Bain's investment also decided to convert the convertible bonds into shares in 2010 to increase the voting rights in the shareholders' meeting. Obviously, the management of Gome has completely drawn the line with Wong Kwong Yu.

It is widely speculated that management is on the side of Chen Xiao, which is related to the management equity incentive launched by Gome in August last year. Chen Xiao said, "Gome is not alone today, but the combination of many resources, including the management team, allows investors to enlarge their capital scale. Now the management share is a reasonable result, which is conducive to maximizing the company's interests. Large shareholders should not oppose this, because the biggest beneficiaries of the company's value increase are large shareholders."

Chen Xiao said, "the scale of equity incentives should be bigger. Sina's current management holding mode also has a certain reference value. Sina's choice is worth learning before many times of equity turmoil."

In September 2009,

Chen Xiao once again affirmed the excellent performance of Gome management in the past 20 months. "Many Chinese founders have collapsed after the accident, such as Delong and" green ", but Gome has been out of crisis in the past 20 months, which are the main reasons for the unprecedented unity of management.

Gome's strategic goal in the next five years is to pform the store operation into a commodity business and focus on the development of the network and the efficiency of the single store.

By 2014, the number of effective stores in Gome will reach 2000.

Its sales scale will reach 180 billion yuan, and the sales of customized products will reach 25%, and the sales of 3C digital products will increase to more than 50%. At the same time, the electronic commerce of Gome will achieve 15 billion yuan scale, accounting for 15% of the scale of online shopping market.

But the management led by Chen Xiao also faces potential counterattack threats from major shareholders.

Chen Xiao said, "the tree wants peace but the wind does not stop."