On March 16, Yonghui Superstores Co.,Ltd. (SH601933) issued an announcement responding to a regulatory inquiry from the Shanghai Stock Exchange regarding the company's asset disposal.
The company previously agreed to transfer its remaining 28.095% stake in Yonghui Yunjin Technology Co., Ltd. to Shanghai Paihui Technology Co., Ltd. for RMB 80 million. The transaction price drew regulatory scrutiny as it was significantly lower than both the historical valuation and book value of the unit, raising concerns about the rationale and potential harm to the listed company's interests.
The valuation of Yunjin Technology has experienced extreme volatility. In December 2019, Yonghui Superstores established the wholly-owned subsidiary with a capital contribution of RMB 500 million to develop supply chain finance services for its core retail business. The primary operation of Yunjin Technology is micro-lending.
As part of a strategic shift, Yonghui Superstores began divesting this non-core asset. In June 2024, the company first sold a 65% controlling stake in Yunjin Technology to Paihui Tech. At that time, the unit was performing strongly, with a 2023 net profit of RMB 92.23 million. The transaction valued 100% of the company at approximately RMB 581 million.
By September 2025, Yonghui Superstores further reduced its non-core investments, selling an additional 6.905% stake in Yunjin Technology to Paihui Tech for about RMB 41.45 million, implying an overall valuation of around RMB 600 million.
In January 2026, to fully exit the quasi-financial business and accelerate asset monetization, Yonghui Superstores decided to sell its remaining 28.095% stake in Yunjin Technology to Paihui Tech. However, the price for this final transaction was only RMB 80 million, implying a total valuation of roughly RMB 285 million. This represents a devaluation of over 50% compared to the valuation from the September 2025 sale.
Yonghui Superstores stated that prior to this deal, it had initially listed the stake for public transfer on the Chongqing United Assets and Equity Exchange on December 31, 2025, with a minimum price set at or above the audited net asset value. After failing to attract potential buyers, the company reduced the listing price twice on January 12 and January 19, 2026, lowering the floor to RMB 153 million and then to RMB 120 million. Despite these significant price cuts, no other bidders emerged.
In its response, Yonghui Superstores indicated that this market reaction directly and objectively reflected that the liquidity value of the equity stake was far below its net book value in the current environment.
The final transaction price of RMB 80 million was determined through negotiations with Paihui Tech. One reason for the weak market response may be a severe decline in Yunjin Technology's profitability. Data shows the unit's net profit plummeted from RMB 92.23 million in 2023 to RMB 38.60 million in 2024, and further dropped to RMB 16.99 million in 2025, a cumulative decline of over 80% in two years.
Addressing the exchange's inquiry about the rationale and fairness of selling the remaining stake at a price substantially below book value and historical valuations, Yonghui Superstores cited three major obstacles that led to a fundamental impairment of the asset's market value.
The first obstacle is the uncertainty surrounding mandatory pre-approval procedures. Any change in ownership exceeding 5% of a local financial institution requires pre-approval from local financial regulators. Yonghui Superstores noted that the lengthy and uncertain administrative approval process deterred potential external buyers, depressing the bidding range. Consequently, the company chose to negotiate with the existing shareholder, Paihui Tech, which had already passed regulatory scrutiny.
The second obstacle stems from the minority stake's inherent characteristics, which significantly impact its intrinsic value. As a minority shareholder, the company's influence over major operational decisions, resource allocation, and profit distribution at the target company is limited. From a market investment perspective, the primary objective for third-party financial or industrial investors is typically to acquire a controlling stake for business integration, making this minority stake unattractive to mainstream investors.
The third obstacle is the tightening of industry regulations, which has a direct impact on valuation expectations for the target company. As a licensed institution, Yunjin Technology faces significant policy-related influences, causing a major shift in its fundamental valuation logic compared to 2024. This is identified as a key external factor for the sharp decline in valuation from its previous peak.
Considering these three challenges collectively, Yonghui Superstores concluded that Yunjin Technology's historical valuation is no longer a relevant benchmark, and its net book value fails to reflect the true realizable value of the equity.
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