Wumart Stores, Inc. has announced that Hangzhou Tiantian Wumart Commerce Co., Ltd., a wholly owned subsidiary of the company, will acquire a 85% stake of Shaoxing Shangchao Investment Co., Ltd. for CNY151,177 million, giving Wumart indirect ownership of 54.09% of shares of Zhejiang Supply and Marketing Supermarket.
A report shows that the business sites of Zhejiang Supply and Marketing Supermarket are mainly located in Shaoxing City, Zhejiang Province. By December 31, 2007, the supermarket had 87 comprehensive supermarkets and convenience stores as well as a distribution center. In 2007, its total revenue was CNY461 million and its net profit was CNY23.46 million; and in 2008, its total revenue was CNY308 million and its net profit was CNY13.55 million.
Fu Yu, the public relations director of Wumart Stores, stated that the company intended to further enhance its business strength in the east China market and the acquisition of Zhejiang Supply and Marketing Supermarket is consistent with Wumart's strategy in this area. Apart from its four existing stores in Hangzhou, the company will open four new stores in cities such as Hangzhou and Huzhou.
Entering the east China market in 2001, Beijing Wumart now has opened over ten stores in many East China cities, including Shanghai, Hangzhou, Ningbo, and Wuxi.