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To accelerate its roll-out of new high-tech retail, Alibaba Group is establishing a JV company with supermarket chain New Hua Du Supercenter.
It will be a co-operative platform to pool their resources and respective advantages in the supply chain.
The controlling shareholder of New Hua Du Supercenter, Newhuadu Industrial group, has transferred 10 per cent equity at lower than market price to Alibaba (Chengdu) Software Technology Company in concert with Hangzhou Hanyun Xinling Equity Investment Fund Partnership, and signed a co-operation framework agreement with Hangzhou Alibaba Zetai Information Technology Company.
After the deal, the proportion of shares held by Newhuadu Industrial Group will decline to 45.8 per cent, and Alibaba (Chengdu) Software Technology and Hangzhou Hanyun Xinling Equity Investment Fund Partnership will own 5 per cent equity of the company respectively.
Newhuadu Industrial Group hopes to introduce strategic investors to advance resource integration and expand business channels through taking advantage of Alibaba’s resources in e-commerce.
New Hua Du Supercenter has also signed a co-operation framework agreement with Alibaba Zetai Information Technology. The two parties have proposed to establish a JV company to invest, open and run innovative stores under the tentative name Fujian New Box Network Technology Company, with a registered capital of RMB200 million (US$30 million). Its business scope will include technical development, technical consulting and technical service in the field of computer networks.
New Hua Du Supercenter and Alibaba Zetai Information Technology will make capital contributions in cash, each by RMB100 million, accounting for 50 per cent of the stake.