Wuhan-headquartered Zhongbai Holdings Group and supermarket chain retailer Yonghui Supermarket have signed a strategic cooperation framework agreement to implement work in resources, networks, information, and logistics to jointly develop their core businesses.
According to Zhongbai Group, the cooperation with Yonghui Supermarket is still in the startingstage. The two parties will need to review their product categories and suppliers and make product price comparison and analyses to determine their joint procurement catalogue and detailed planning and process for the next steps.
Financial terms of the partnership were not released.
Yonghui Supermarket has operations in 17 provinces and cities, including Fujian, Chongqing, Beijing, and Shanghai. However, the company has not entered Hubei province. Meanwhile, Hubei is the base camp of Zhongbai Group. With the cooperation, Yonghui Supermarket will be able to further expand its market.
The semi-annual performance report of Yonghui Supermarket showed that by June 30, 2014, the company had 115,140,831 Zhongbai shares, accounting for 16.91% of the total shares of the latter.
By September 30, 2014, Zhongbai Group had developed 1,023 business sites across China. Of those, the number of warehousing supermarkets was 265, including 176 hypermarkets; the number of Zhongbai supermarkets was 704, including 12 franchised stores; the number of department stores was ten; and the number of electronics specialty stores was 44.