Wuhan State-Owned Assets, regarded as the "white knight" for Bestore Co., Ltd. during its troubled times, ultimately failed to gain control of the struggling snack giant.
On the evening of October 16, Bestore announced that the planned transfer of control from its major shareholder, Ningbo Hanyi Venture Capital Partnership, and its concerted party, Bestore Investment, to Wuhan State-Owned Assets has been terminated due to unfulfilled conditions stipulated in the agreement.
This signifies that the transaction, which could have altered the fate of Bestore, has ended fruitlessly after 90 days of contemplation. The largest shareholder remains Ningbo Hanyi, with actual controllers still being Yang Hongchun, Yang Yinfeng, Zhang Guoqiang, and Pan Jihong.
The immediate cause of this transaction's termination lies in a share transfer dispute between Ningbo Hanyi and Guangzhou Light Industry and Trade Group Co., Ltd. In May, Ningbo Hanyi had signed an agreement with Guangzhou Light Industry, allowing the latter to acquire part of Bestore's shares following due diligence.
However, Ningbo Hanyi subsequently failed to sign a formal share transfer agreement with Guangzhou Light Industry and instead partnered with Wuhan Yangtze International Trade Group Co., Ltd. This action displeased Guangzhou Light Industry, which filed a lawsuit on July 14 and applied for asset preservation, resulting in the freezing of Ningbo Hanyi's 19.89% stake in Bestore.
Guangzhou Light Industry has taken a firm stance in the equity transfer dispute with Ningbo Hanyi. A month later, it amended its litigation request, demanding not only the continuation of the equity transfer agreement but also daily penalty fees calculated at 0.05% of the total transaction price, along with compensation for losses incurred from lawsuit preservation and legal fees.
As of July 31, the penalties and associated costs claimed by Guangzhou Light Industry have accumulated to approximately 1.023 billion yuan.
This litigation directly impacted the progress of the transaction between Ningbo Hanyi and Yangtze International Trade, and despite extending the agreement deadline by 30 days to October 15, the dispute remains unresolved.
The poor performance of Bestore in recent years could be a significant factor behind the major shareholder's attempts to transfer control. In 2024, Bestore recorded its first annual loss since going public, with a net loss of 46.1 million yuan. In the first half of 2025, the company turned from profit to loss, accumulating a loss of 93.55 million yuan.
Faced with these performance challenges, Bestore has attempted various self-rescue measures, including frequent leadership changes, significant price cuts, and expanding product categories, but none have shown effective results.
Due to the impacts of consumer downtrading and competition from mainstream snack brands, this once-prominent "first stock of high-end snacks" has seen its market value shrink by more than 80% from its peak, now standing at only 5 billion yuan.
Comments