On March 17, there was news$Alibaba (BABA.US)$/$BABA-SW (09988.HK)$Internally, it has been decided that Da Runfa and Hema will be sold to COFCO. Of these, Da Runfa estimates about RMB 10 billion and Hema is estimated at RMB 20 billion. In response, both Hema and Da Runfa responded to the reporter: “Fake.”
The reporter learned that many Hema and Da Runfa employees also retweeted rumors in their circle of friends, adding that they were “fake.”
In February of this year, Alibaba Group Chairman Cai Chongxin said in response to the “Ali Withdrawal from Physical Retail” rumor at an earnings conference: “Currently, there are still some traditional physical retail businesses on Ali's balance sheet. They are not the core focused businesses, and it is reasonable for Ali to withdraw. But given the current market conditions, the exit may take time to materialize.” Perhaps the response sparked rumors and concerns about Ali's withdrawal from Hema and Da Runfa.
On March 17, a report quoted people familiar with the matter as saying that Ali has basically decided to sell Da Runfa and Hema to COFCO. Da Runfa is estimated at 10 billion yuan, and Hema is estimated at 20 billion yuan. A framework agreement between the two sides has already been drawn up, and Ma Yun made the final decision within Ali.
In response to the rumor of the sale, people related to Hema called it “fake” in response to an inquiry from the Securities Times reporter.
This isn't the first time Hema has heard that it has been sold. In December of last year, it was reported that Ali Group CEO Wu Yongming made a series of capital plans, including considering selling Hema. At the time, Hema also refuted the rumor saying “the rumor of being sold is untrue.”
Earlier, in November of last year, Alibaba revealed in its earnings report that Hema's initial public offering plan has been suspended and that it is evaluating market conditions and other factors necessary to ensure the successful implementation of the project and enhance shareholder value.
A relevant person from Da Runfa also responded to the Securities Times reporter saying that the rumor was untrue and “has been refuting the rumor.”
While mired in “being sold” rumors, the business development of Da Runfa and Hema has also attracted much attention. Da Runfa told reporters that on March 17, Da Runfa Super Zhuhai Rongde officially opened offline. This is the first store in Zhuhai, a medium-sized supermarket owned by Gaoxin Retail. According to reports, since January of this year, Gaoxin Retail has accelerated store opening. Various business formats such as Da Runfa, Da Runfa Super, and M member stores will open 21 stores across the country this year. At the same time, operating adjustments will be made based on changes in the local market and customer needs. Da Runfa stores over 10 years will be remodeled, and the 2.0 version restructuring of 90 stores is expected to be completed.
In response to recent news of “removing and closing doors” in various places, Hema recently published an article in response saying that the so-called “Hema everywhere removed its doors” mentioned in the report. Due to reasons such as the expiration of property contracts and the slump in individual shopping malls, etc., 6 to 7 stores will be closed nationwide in the first half of this year, and they are also looking for better properties nearby to meet consumer demand. The article also revealed that Hema plans to open 70 new stores this year, while more than 360 stores are operating normally.
Editor/Jeffrey