On December 16, Bestore Co.,Ltd.'s litigation progress announcement drew significant market attention. Guangzhou Light Industry Trade Group Co., Ltd. ("Guangzhou Light Industry") amended its lawsuit claims, completely abandoning its request to acquire Bestore shares and instead demanding termination of the equity transfer agreement with compensation of 20.74 million yuan.
This reversal not only marks the end of the battle for control of Bestore between state-owned enterprises from different regions but also highlights the operational difficulties and equity deadlock facing this leading snack food company.
**Dispute Progress: Guangzhou Light Industry Withdraws Acquisition Claim, Reduces Compensation Demand**
The origin of this equity dispute traces back to Ningbo Hanyi's debt resolution needs. In May 2025, Bestore's controlling shareholder, Ningbo Hanyi Venture Capital Partnership (Limited Partnership) ("Ningbo Hanyi"), signed an equity transfer agreement with Guangzhou Light Industry to alleviate debt pressure. The agreement stipulated that Guangzhou Light Industry would acquire 79.764 million shares at 12.42 yuan per share, totaling 991 million yuan, aiming for control of Bestore. Bestore's actual controller, Yang Hongchun, and others confirmed the agreement and issued commitment letters.
However, after the scheduled signing date of May 28, Ningbo Hanyi failed to finalize the formal transaction agreement with Guangzhou Light Industry. In July of the same year, Ningbo Hanyi instead signed an equity transfer agreement with Wuhan Changjiang International Trade Group Co., Ltd. ("Changjiang International Trade"), a Wuhan state-owned enterprise, planning to transfer 21% of its shares. This "double-booking" move angered Guangzhou Light Industry, which filed a lawsuit on July 14 and applied for asset preservation, freezing Ningbo Hanyi's 79.764 million Bestore shares. Consequently, the deal with Changjiang International Trade was terminated in October due to the share freeze preventing fulfillment of conditions.
Guangzhou Light Industry's amended lawsuit represents a complete reversal. Not only did it abandon the core share acquisition claim, but it also reduced the compensation demand from the initial 32.63 million yuan to 20.74 million yuan. Asset preservation measures were adjusted accordingly, retaining only a freeze on 3.268 million shares (worth 40 million yuan) and allowing Ningbo Hanyi to unfreeze the rest with equivalent assets. When asked about the withdrawal, Guangzhou Light Industry officials stated, "All information is subject to the announcement." However, the market widely believes Bestore's deteriorating operations may be the key factor.
**Operational Warning Signs: Revenue and Profit Decline Across All Channels**
Amid the equity dispute, Bestore faces its most severe operational challenges since inception. In 2024, the company reported its first annual loss. By the first three quarters of 2025, conditions worsened further, with revenue plunging 24.45% year-on-year to 4.14 billion yuan and net profit swinging to a loss of 122 million yuan, down 730.83% year-on-year.
Store closures directly dragged down performance. In Q3 2025, Bestore opened 65 new stores but closed 283, resulting in a net reduction of 218 stores. As of September 30, the total store count stood at just 2,227. While management framed this as "strategic optimization of low-efficiency stores," the immediate revenue impact from closures was evident. Remaining stores also underperformed, with both online and offline channels under pressure.
By channel, offline franchise sales fell 25.58% year-on-year to 377 million yuan in Q3, with gross margin down 4.56 percentage points. Direct retail sales dropped 19.83% to 374 million yuan, with gross margin down 2.67 percentage points. E-commerce sales declined 14.02%, while group buying gross margin fell 5.04 percentage points. Across all channels, shrinking profit margins pushed the company's overall gross margin down to 24.96%.
Regional markets also weakened, with sales in four key regions—East China, Southwest, North China, and Northwest—all dropping over 30%. East China, the revenue pillar, saw a 36.33% decline.
With Guangzhou Light Industry withdrawing its acquisition claim, Bestore's equity structure has stabilized temporarily, but deep-rooted operational issues remain unresolved. In the short term, the company must accelerate optimization of underperforming stores, improve per-store efficiency, and upgrade its product mix to align with healthier consumption trends. Long-term challenges include easing liquidity pressure, rebuilding channel advantages, and restoring market competitiveness—all critical tasks for management.
(Note: This article was created with AI assistance and does not constitute investment advice.)
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