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Chairman running away, back stabbing fat coming east? Response from well-known supermarkets →

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Yonghui Supermarket responded to false rumors circulating in the market, such as "the chairman running away" and "the backstabbing of Fat East".
On the evening of September 28th, Yonghui Supermarket's official WeChat account released the "Explanation on the Equity Change of Yonghui Supermarket Co., Ltd." (hereinafter referred to as the "Explanation").
The explanation mainly responds to four points:
1. This transaction occurred between Milk Company, Suqian Hanbang, JD World Trade, and Juncai International, and there was no change in the equity ratio of the founder and chairman, Mr. Zhang Xuansong.
After the completion of this transaction, the largest shareholder of the company will be changed to Guangdong Juncai International Trading Co., Ltd., holding a total of 29.4% of the company's shares. The original shareholders, Milk Co., Ltd. and Suqian Hanbang Investment Management Co., Ltd., will no longer hold shares in Yonghui Supermarket. Beijing JD Century Trading Co., Ltd. will change its shareholding ratio from 6.98% to 2.94%. Juncai International and its implementing company, Miniso, will work together with Yonghui Supermarket to create a quality and happy business model.
3. Currently, Yonghui Supermarket is carrying out comprehensive adjustments to some stores in the first 10 cities across the country in terms of product structure, quality and price, store layout and flow, environment, service, and employee benefits, while helping and learning from the dual line transformation of Pangdong.
Next, Yonghui Supermarket will continue to learn from Pangdonglai, and Pangdonglai will also continue to assist Yonghui Supermarket in adjusting and striving to achieve its healthy operation goals.
Previously, on September 23rd, Yonghui Supermarket and Miniso announced that Juncai International, controlled by Miniso, would acquire 29.4% of Yonghui Supermarket's shares for RMB 6.27 billion, including 21.1% held by Milk Co., Ltd. and 8.3% of Yonghui Supermarket's shares jointly held by Beijing JD Century Trading Co., Ltd. and Suqian Hanbang Investment Management Co., Ltd.
After the announcement, Yonghui Supermarket's stock price hit the daily limit up for four consecutive trading days. The stock price of Miniso fell sharply on the day of its announcement.
During a conference call, Ye Guofu, Chairman of Miniso, discussed the reasons for the acquisition and stated that offline supermarkets in China are facing a once-in-20-year structural opportunity. Miniso, Sam's Club, and Costco are specialty retailers. After seeing the first store that Henan Pangdonglai helped Yonghui renovate, he was deeply impressed. After the renovation, sales were booming. He believes that Pangdonglai is the only way out for Chinese supermarket retail. Yonghui Supermarket attaches great importance to products, as well as customer experience and employees. Pangdonglai Pingxiao and Renxiao are also the highest retail enterprises in China.
Ye Guofu also believes that Fat Donglai is more suitable for China's family sales model. Based on this, we want to reshape the pattern of offline supermarkets in China. The significant improvement in performance achieved by the three restructured stores makes us feel that we can replicate it to other parts of the country, "he said
After the news of Miniso's acquisition of a portion of Yonghui Supermarket's equity was released, Yu Donglai, the chairman of Pangdonglai, publicly discussed the idea that "Pangdonglai will not make any further adjustments", which sparked heated discussions. In a video circulating online, Yu Donglai said, "At least by the end of October, if we have to be fast, by the end of September, we will withdraw our troops and no longer adjust our companies. We won't help anyone anymore." In response to this, Yu Donglai said on the early morning of September 26th, "Regarding the action to help enterprises, assist joint business students, and Yonghui BuBuGao, it will continue for about two more years, and these companies can basically adjust themselves! In order to ensure the normal work and life of Pangdonglai employees, Pangdonglai will only no longer send teams to new companies for assistance
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Disclaimer: The views expressed in this article are those of the author only, this article does not represent the position of CandyLake.com, and does not constitute advice, please treat with caution.
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