Zhongbai Group sells four subsidiaries for 111 million yuan in related-party restructuring
Zhongbai Group, a Chinese supermarket chain, announced on September 23 the sale of stakes in four subsidiaries to state-owned enterprises under Wuhan Industrial Investment Holding Group for a total of 111 million yuan. The transactions include selling 100% of Wuhan Zhongbai Logistics for 71.32 million yuan, a 12.53% stake in Huachuang Small Loan for 22.09 million yuan, a 49% stake in Wuhan Kede Frozen for 17.79 million yuan, and 100% of Chongqing Warehouse for 1 yuan. The company cited a strategy to streamline operations and optimize assets amid widening losses.
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Zhongbai Group plans to transfer stakes in multiple subsidiaries for 111 million yuan in related-party deal
Zhongbai Group announced plans to transfer equity in several subsidiaries for a total consideration of 111 million yuan, in a series of related-party transactions. The company will sell its 12.53% stake in Wuhan Jiang'an Huachuang Small Loan Co., Ltd. to Wuhan Guochuang Xinsheng Commercial Management Co., Ltd. for 22.09 million yuan. Its wholly-owned subsidiary Zhongbai Department Store will transfer its stake in Wuhan Kede Cold Chain to Wuhan Grain and Oil Group for 17.79 million yuan. Another wholly-owned subsidiary, Zhongbai Warehouse, will sell its 100% stake in Chongqing Warehouse to Wuhan Grain and Oil Group for 1 yuan, citing weak profitability and heavy asset investment. The buyers are state-owned enterprises under Wuhan Industrial Investment Holding Group, the same parent as Zhongbai's largest shareholder, making the transactions related-party deals. The company stated these moves aim to optimize asset structure, improve operational efficiency, and control financial business risks. Additionally, Zhongbai is accelerating store transformation, with some community hard-discount stores seeing a 9.11% sales increase and 14.12% rise in customer traffic.
Read sourceZhongbai Group to Sell Multiple Subsidiary Stakes for 111 Million Yuan in Related-Party Deal
Zhongbai Group (000759), a Chinese supermarket chain operator, announced on September 23 that it plans to transfer equity stakes in several wholly-owned and partially-owned subsidiaries to affiliated companies for a total consideration of approximately 111 million yuan. The transactions include selling 100% of Wuhan Zhongbai Logistics Distribution Co., Ltd. to Wuhan Grain and Oil Group for 71.32 million yuan; a 12.53% stake in Wuhan Jiang'an Huachuang Small Loan Co., Ltd. to Wuhan Guochuang Xinsheng Commercial Management Co., Ltd. for 22.09 million yuan; a 49% stake in Wuhan Kede Frozen Food Co., Ltd. to Wuhan Grain and Oil Group for 17.79 million yuan; and 100% of Chongqing Warehouse to Wuhan Grain and Oil Group for 1 yuan. The company stated the moves are part of its strategy to 'slim down and strengthen,' optimize asset structure, and improve operational efficiency. The buyers are state-owned enterprises under Wuhan Industrial Investment Holding Group, making the transactions related-party deals. The company noted that Chongqing Warehouse has weak profitability due to market competition and heavy asset investment, while Kede Frozen Food ceased its core cold chain distribution business in 2016. The divestments align with Zhongbai's broader efforts to dispose of non-core assets and accelerate store transformation, including opening discount stores that have shown improved sales and customer traffic.
Read sourceZhongbai Group to Sell 100% Stake in Zhongbai Logistics to Wuhan Grain and Oil Group for 71.3 Million Yuan
On September 23, 2026, Zhongbai Group announced it will transfer its 100% equity stake in Zhongbai Logistics to Wuhan Grain and Oil Group for 71.3221 million yuan. The transaction constitutes a related-party deal as both the buyer and Zhongbai Group's largest shareholder, Wuhan Commercial Union Group, are subsidiaries of Wuhan Industrial Investment Holding Group. The valuation, based on a May 31, 2026 assessment, shows a 212.16% premium over the audited net equity of -63.5874 million yuan. The buyer must pay the full amount within 10 working days of the agreement's effective date, with a closing deadline of October 31, 2026. The board approved the deal with 5 votes in favor, 0 against, and 0 abstentions, with related directors recused. The transaction still requires shareholder approval. Proceeds will be used to supplement the company's working capital.
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Zhongbai Group and Subsidiary to Transfer Two Companies' Equity at Nominal Price
Zhongbai Group and its subsidiary plan to transfer 100% equity of Zhongbai Group Supermarket Co., Ltd. at a price of 1 yuan, and transfer Wuhan Zhongbai Logistics equity to Grain and Oil Group for 71.32 million yuan. The buyer, Grain and Oil Group, and the company's largest shareholder, Wuhan Commercial Union, are both state-owned enterprises under Wuhan Industrial Investment Holding Group, making the transaction a related-party deal. For the first half of 2026, Zhongbai Group reported revenue of 3.586 billion yuan and a net loss attributable to shareholders of 296 million yuan. The information is sourced from Caizhongshe.
Read sourceZhongbai Group to Sell Two Subsidiaries: Logistics Unit for $7132M, Chongqing Warehouse for $1
Zhongbai Group and its subsidiary Zhongbai Cangchu Supermarket announced on September 23 the transfer of 100% equity in two subsidiaries to Wuhan Grain and Oil Group, a state-owned enterprise under Wuhan Industrial Investment Holding Group. The Chongqing Cangchu unit, which is insolvent with negative equity of -1.99 billion yuan as of May 31, 2026, will be sold for a symbolic price of 1 yuan. The buyer will provide a 3.65 billion yuan loan to repay the unit's 3.64 billion yuan payables to Zhongbai Cangchu. Separately, Zhongbai Logistics' 100% equity will be sold for 71.32 million yuan, despite its negative equity of -63.59 million yuan, due to a 212.16% valuation increase from construction asset appreciation. Both transactions are related-party deals requiring shareholder approval. Zhongbai Group, which reported widening losses of 957 million yuan in 2025 and a 22.35% revenue decline in the first half of 2026, stated the sales align with its strategy to streamline operations and optimize assets amid intense market competition.
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