Yonghui Supermarket announced on the evening of October 24 that Yonghui Supermarket, Baijia China and Tencent intend to establish a Sino-foreign joint venture in China, and the equity of Guangdong Yonghui and Shenzhen Yonghui held by Yonghui Supermarket. As well as the shares of Guangzhou Baijia, Jiangmen Baijia, Dongguan Baijia and some cash held by Baijia China, the joint venture company was placed.
According to the announcement, all the stores of the joint venture company use the “Baijia Yonghui” brand. The value of the equity of Yonghui Supermarket and Baijia China is 622 million yuan and 502 million yuan respectively, accounting for 50% and 40% respectively. Tencent invested 125 million yuan in cash. 10%.
All the stores of the joint venture company use the “Pokka Yonghui” brand. The board of directors consists of six directors. Among them, Yonghui Supermarket has the right to appoint three directors, Pokka China has the right to appoint two directors, and Tencent has the right to appoint one director. The board of directors has a chairman who is appointed by the director of Yonghui Supermarket.
Yonghui said that the establishment of the joint venture company and foreign investment will help Yonghui Supermarket’s performance in the Guangdong region. After the transaction is completed, the company’s ability to control the newly established joint venture will result in an increase in the scope of the company’s consolidated statements. As this transaction did not affect the company’s control over Guangdong Yonghui and Shenzhen Yonghui, it was an equity transaction, so the change in the equity of Guangdong Yonghui and Shenzhen Yonghui due to the transaction had no impact on the company’s profit and loss.
The announcement also disclosed that up to the related party transactions, the amount of connected transactions with Tencent’s accumulated operating rights in the past 12 months amounted to 98.97 million yuan, accounting for less than 5% of the latest audited net assets of listed companies.