China Resources Vanguard completely exits Shandong market On May 20, all equity of Shandong China Resources Vanguard Life Supermarket Co., Ltd. was listed for transfer on the Shanghai United Assets and Equity Exchange. This is another clear sign of exiting the Shandong market, following the formal takeover of seven stores in Shandong by Jiajiayue in March this year. At this point, China Resources Vanguard has completely exited the Shandong market. According to information from the Shanghai United Assets and Equity Exchange, the transferor is Tianjin China Resources Vanguard Life Supermarket Co., Ltd. (hereinafter referred to as "Tianjin China Resources Vanguard"), and the transfer target is the 100% equity of its wholly-owned subsidiary Shandong China Resources Vanguard Life Supermarket Co., Ltd. (hereinafter referred to as "Shandong China Resources Vanguard"). Tianyancha information shows that Shandong China Resources Vanguard was established in August 2010, is a wholly-owned subsidiary of Tianjin China Resources Vanguard, with Chairman and General Manager Xiao Bin. From December 28, 2018 to now, the company has increased its registered capital twice, from 471 million yuan to 1.03 billion yuan, an increase of 118.65%, with paid-in capital of only 10 million yuan. According to the equity transfer announcement, in 2017, Shandong China Resources Vanguard had a net loss of up to 123 million yuan. In the first quarter of 2019, Shandong China Resources Vanguard's operating revenue was 157 million yuan, with a net loss of -10.4207 million yuan. As of the end of the first quarter, the company's total assets were 128 million yuan, total liabilities were 742 million yuan, and owner's equity was -614 million yuan. Store trusteeship, focusing on small formats such as premium supermarkets Before the equity transfer, Shandong China Resources Vanguard had entrusted its store assets to Jiajiayue Group for operation and management. On March 6, Jiajiayue issued an announcement stating that on March 6, 2019, Jiajiayue reviewed and approved the "Proposal on the Company Signing Asset Management Agreement", formally taking over seven stores of China Resources Vanguard in Shandong. "Announcement of Jiajiayue on Signing Asset Management Agreement" The announcement pointed out that Jiajiayue signed the "Asset Management Agreement" with Tianjin China Resources and Shandong China Resources. According to the agreement, Tianjin China Resources will entrust the overall management of the seven stores under Shandong China Resources that are currently operating (2 in Jinan, 3 in Qingdao, 1 in Zibo, 1 in Yantai) and the necessary management rights related to supporting the daily operations of these seven stores to the company. During the trusteeship period, the company enjoys the operating rights, asset management rights, personnel employment and appointment/dismissal rights of the seven stores of Shandong China Resources according to the agreement, including store equipment and facility management, supply chain management, product management, sales management, employee management, and other matters related to supermarket store operations. It is worth noting that the trusteeship agreement also shows that in terms of trusteeship fees, if the seven stores in Shandong accumulate losses during the trusteeship period, Shandong China Resources does not need to pay any management fees to Jiajiayue. If the seven stores accumulate profits during the trusteeship period, Shandong China Resources will pay Jiajiayue management fees at 30% of the accumulated profits. At the same time, losses during the trusteeship period are borne by Shandong China Resources or its shareholders. If the annual losses of the seven stores during the trusteeship period exceed their unaudited profit losses in 2018, the excess losses will be compensated by Jiajiayue to Shandong China Resources. Prior to this, China Resources had already entrusted five stores in Beijing to Wumart. After Wumart took over, China Resources Vanguard's development focus in Beijing was placed on small formats such as premium supermarkets. China Resources Vanguard Zhonghai Huanyu City Store/Photo According to media reports, since 2016, China Resources Vanguard has continuously reduced its stores in the Shandong region, with about half of its stores closed. Since 2016, China Resources Vanguard's Weifang Yuanfei Road store, Zibo Huaguang Road store, Jining Taibai Road store, Yantai Haigang Road store, and Weifang Wanda Plaza store have been closed one after another. In April 2018, the China Resources Vanguard Laoshan Thumb Plaza store on Haier Road in Qingdao announced its closure, with the official reason being business adjustment. According to incomplete statistics, since 2016, China Resources Vanguard has closed 7 stores in 6 cities in Shandong. If we add the Huanyu City store and Dinghao Plaza store in Jinan, the Lecheng City store in Qingdao, and the MixC store in Zibo, and 1 store in Yantai, China Resources Vanguard has closed more than 10 stores in Shandong. Now China Resources Vanguard has not only fully entrusted its stores in Shandong but also transferred 100% of its equity, which also indicates that the China Resources Vanguard brand will formally and completely withdraw from the Shandong market. With the impact of various new retail and fresh food supermarkets, old-fashioned supermarkets have reached a dead end. Whether to transform or give up is a question worth pondering... "2018 China FMCG Chain Top 100" China Resources Vanguard ranks first Source: China Retail Network Tips will be paid 400-2000 yuan once adopted China FMCG + Internet professional new media Committed to FMCG manufacturers' transformation and upgrading and channel digital solutions