Bestore Co., Ltd. (603719.SH), a leading Chinese leisure food company, announced on July 17 that it would introduce Changjiang International Trade Group Co., Ltd., a subsidiary of Wuhan State-owned Assets Wuhan Financial Holdings (Group) Co., Ltd., as a strategic investor.
On the same day, Bestore’s controlling shareholder Ningbo Hanyi and its concerted actor Ningbo Liangpin Investment Management Co., Ltd. signed a share transfer agreement with Changjiang International Trade.
The total transaction amount is 1.046 billion yuan. After the equity transfer, Changjiang International Trade Group will hold 21% of the listed company’s total shares, becoming the company’s new controlling shareholder in the future, it said.
The company’s stock will resume trading on the morning of July 18.
“This is not a simple equity transaction, but a preemptive move to build core competitiveness for the next decade of development,” Bestore stated.
Following this equity transfer, the company’s controlling shareholder will change from Ningbo Hanyi to Changjiang International Trade. The actual controllers will shift from Yang Hongchun, Yang Yinfeng, Zhang Guoqiang, and Pan Jihong to the State-owned Assets Supervision and Administration Commission (SASAC) of Wuhan Municipal Government.
Notably, Bestore revealed that it had received notice from controlling shareholder Ningbo Hanyi that recently, Guangzhou Light Industry & Trade Group Co., Ltd. filed a lawsuit against Ningbo Hanyi over an equity transfer dispute and applied for asset preservation.
As a result, 79,763,962 shares of Bestore held by Ningbo Hanyi have been frozen, accounting for 56.46% of the shares held by Ningbo Hanyi and 19.89% of Bestore’s total share capital, wich may pose uncertainty risks regarding the transfer of control from Ningbo Hanyi to Changjiang International Trade.
On July 15, Bestore issued a performance forecast, estimating a net loss attributable to shareholders of the listed company between 75 million yuan and 105 million yuan for the first half of this year. The net loss after deducting non-recurring gains and losses is projected between 100 million yuan and 130 million yuan. In 2024, the company’s revenue was 7.159 billion yuan.
Founded in 2006, Bestore is a leading brand in the leisure snacks sector with full-channel and full-category offerings. It operates more than 2,700 offline stores, and its online business covers all major e-commerce platforms nationwide.
On July 10, Bestore announced that its controlling shareholder, Ningbo Hanyi Venture Investment Partnership (Limited Partnership), was planning a major transaction that could lead to a change in control of the company. Trading was suspended from the morning of July 11.
According to public information, Changjiang International Trade is a large international trade platform enterprise owned by Wuhan Municipality Government. Its business focuses on integrated supply chain services, international and domestic trade, modern warehousing and logistics, and foreign economic and trade exchanges.