At the end of December 2017, Yonghui Superstore gained 12% of the shares of Hongqi Chain Store through a share transfer agreement. Even though it has not even been half a month since then, Yonghui has once again joined hands with Hongqi Chain Store, as it spent a total of 16,6 billion yuan to acquire 21% of the shares, making it the second largest shareholder. Apart from sharing equity, the two stores have also signed a strategic partnership agreement with the Zhong Min Investment Group. The three parties are planning to collaborate on many different areas, such as new retail, community service, and community logistics.
Yonghui Superstore
Up until June 2017, Yonghui Superstore had 550 retail stores all over China. In the first half of this year, it will open 35 new stores (not including member stores, Super Species or Youxian stores), and will sign contracts for another 54. Yonghui Superstore has already signed contracted for 207 stores yet to be opened, with a total area of 1,8 million square meters. Sichuan currently has 42 stores. Only Fujian, Shanghai and Chongqing have more stores than that. What deserves attention is that Yonghui Superstore has signed contracts for another 30 stores in Sichuan, making it the province with the most stores in China. Clearly, Yonghui Superstore is planning to focus more on the Sichuan market in the future.
In its 2017 statements, Yonghui Superstore revealed that its business is divided into seven regions, amongst which are Fujian, West China, Beijing and Anhui. Of all the regions, it has realized its largest revenue in the West China area, with 9,75 billion yuan. Hongqi Chain Store is the first supermarket chain to enter the Chinese A-share market. It already has an enormous resource network, and has established 2,800 stores, including formats like convenience stores, 24 hour stores, middle-sized supermarkets, and express stores. Hongqi Chain Store also has four distribution centers. Its chain stores especially have a leading position in the southwest of China.
Source: Securities Times