On October 24th, Suning Tesco announced today that in order to support the development of the company’s overseas business, the company’s overseas subsidiary Suning International Group Co., Ltd. and its subsidiaries plan to apply for loans from overseas banks and other financial institutions. The total amount of financing is not More than 4 billion yuan, the financing period is no more than 3 years.
The announcement said that in order to strengthen the stocking and promote sales, the company plans to apply for loans from banks and other financial institutions. The financing amount is expected to not exceed 5 billion yuan, and the financing period is no more than one year.
The announcement shows that from the beginning of the year to the resolution of the board of directors, the company and its subsidiaries have a loan amount of 22.812 billion yuan (excluding Suning Jinfu and its subsidiaries), accounting for 28.89% of the company’s audited net assets for 2017. As of June 30, 2018, the company’s overall asset-liability ratio was 52.07%, and the asset-liability ratio was generally controllable.
The announcement pointed out that the company’s board of directors believes that the company’s application for loans will be beneficial to the development of the company’s business and continue to enhance market competitiveness, and will not have a significant impact on the company’s finances.