China Resources Vanguard has signed a cooperation agreement with Ningbo Fubang Holdings for investing RMB100 million into the retail sector of Ningbo.
Chen Lang, CEO of CR Vanguard, says that there is a good market base for franchises in Ningbo, so the cooperation with companies in Ningbo will help them localize and enter the local market quickly.
Chen believes that purchasing power in Ningbo is very strong, which is a good condition for running retail businesses.
China Resources Enterprises' China supermarket business is managed principally via two subsidiary companies, China Resources Vanguard and Suguo.
The operation of China Resources Vanguard is concentrated in southern China while that of Suguo is in eastern China. At the end of December 2004, the company totally operated about 1,825 stores in Hong Kong and the Chinese Mainland, which included 231 convenience stores, 439 standard supermarkets, 120 superstores, 19 hypermarkets and 1,016 franchised stores.