When facing thousands of listed company announcements every day, which ones should you read? What are the key points to take away from the dozens or hundreds of pages of material announcements? Are the many professional terms in the announcements bullish or bearish? Check out Caixin's "Quick Read Announcement" column, where our reporters across the country will provide you with accurate, fast and professional interpretations on the night of the announcement.

On September 23, CaiLian News (Reporter Wu Weiling) reported that despite the intention of Miniso (MNSO.N) to become the largest shareholder of Yonghui Superstores (601933.SH), its stock price plummeted, with a drop of over 19% at the opening of US stocks. The management of Miniso stated this evening that they are not expected to become the actual controller of Yonghui Superstores.

The evening announcement shows that Yonghui Superstores' shareholders - Milk Co., Ltd. (referred to as 'Milk Company'), Beijing JD Century Trading Co., Ltd. (referred to as 'JD Century Trade'), and Suqian Hanbang Investment Management Co., Ltd. (referred to as 'Suqian Hanbang'), intend to transfer their company shares held to Guangdong Juncai International Trading Co., Ltd. (referred to as 'Juncai International') through an agreement transfer, accounting for 21.08%, 4.05%, and 4.27% of the total share capital of the company respectively.

According to the evening announcement by Miniso, the transaction amount is 6.27 billion yuan, to be paid in cash.

After this transaction is completed, Juncai International will become the largest shareholder of Yonghui Superstores, holding a total of 29.40% of the company's shares, with Miniso as the ultimate controlling shareholder. Milk Company and Suqian Hanbang will no longer hold company shares, and JD Century Trade's shareholding will also decrease from 6.98% to 2.94%.

Miniso's Chief Financial Officer, Zhang Jingjing, stated during a conference call that after completing the acquisition of 29.4% of Yonghui Superstores' shares, Miniso will become the largest shareholder of Yonghui Superstores. However, they do not expect to control the majority of the board of directors, therefore, they will not be the controlling shareholder or controller of Yonghui Superstores, nor will they consolidate financial statements, based on the current situation. The transaction is expected to be completed in the first half of 2025, and important milestones will be disclosed to everyone during this period.

As the position of the largest shareholder is about to change hands, Yonghui Superstores stated that Juncai International and its actual controller, Miniso, will work together with the company to transform towards a quality retail model.

Miniso announced in the evening today that the acquisition will expand the company's investment in and operation channels for daily necessities retail business, allowing the company to diversify the risks of cyclical business and is of significant global strategic importance.

"Currently, it seems that Miniso is focusing on the development trend of discount formats and intends to make discount adjustments to Yonghui Superstores. Of course, it cannot be ruled out that this is purely a capital operation," said Zhuang Shuai, retail e-commerce industry expert and founder of Bailian Consulting, in an interview with Caixin.

Currently, the overall operation of the traditional supermarket industry is still not optimistic. The financial report shows that in the first half of the year, Yonghui Superstores achieved income of 37.779 billion yuan, a year-on-year decrease of 10.11%; net income attributable to shareholders was 0.275 billion yuan, a year-on-year decrease of 26.34%.

Yonghui Superstores stated that on one hand, the retail competitive situation is extremely severe, and due to factors in the overall environment, the consumption habits of some consumers have changed. At the same time, the majority of consumers have higher requirements for product quality, service, and shopping experience, leading to a certain degree of decline in company traffic flow and average customer spending. On the other hand, the company proactively closed underperforming stores, resulting in a decrease in overall revenue for the reporting period compared to the same period last year. However, the company has actively learned from outstanding peers, established initiatives to actively improve quality and service.

As of the time of drafting, Miniso's U.S. stocks fell more than 13%.