Jiuding Capital Invests 150 Million Yuan in Hongqi Chain, The 4th Investment in Sichuan
2010-06-04
Jiuding Capital invests in 150 million yuan in Hongqi Chain, a very famous community chain supermarket in Sichuan, which has invested in many well-known Sichuan enterprises like Gifore, GEEYA technology and Juntong Communications before.
According to report, the capital verification work has been completed and the foundation meeting will be hold later.
Background
“In fact, we have noticed Hongqi Chain since 2008 when my team was working on Gifore project,” said Lei CAI, “at that time, we are busy in the DD investigation, and have no clue to come into contact with the company. At the end of last year, I got to know President Cao Shiru through my friend and began to cooperative after communications.”
As a professional nationwide VC/PE firm, Jiuding Capital has invested in many leading enterprises in Sichuan and helped them in strategic planning, market exploration, MA, brand improvement, etc. Hongqi’s president Cao Shiru admitted she preferred the value-added services provided by Jiuding Capital in an interview: “Both of us have looked up highly the development prospect of enterprises in western areas and known well about Sichuan’s business environment and enterprises’ demands. Jiuding Capital trusts my team, too.”
Following information is shown on the official website of Hongqi Chain.
Founded in June 2000, Hongqi Chain Co., Ltd. has developed in to a large-sized commercial chain enterprise integrating chain business, logistics and e-commerce in Western China, with over 100 chain stores, tens of thousands of workers, taxpaying of more than 600 million yuan and two modern logistic centers. Hongqi has established good relationships with thousands of suppliers. In 2002, Hongqi Trademark passed the approval of the State Administration for Industry and Commerce Trademark Bureau and was registered successfully, which has been awarded Chengdu Famous Trademark and Sichuan Famous Trademark successively. Meanwhile, the company has been rated as Top 500 Service Enterprises in China, Top 100 Commercial Enterprises in China, Top 100 Retail Enterprises in China, etc.
Successful Cooperation
As an excellent leading enterprise in Sichuan province, Hongqi has attracted many investors and finally selected to cooperate with Jiuding Capital and another investor from Eastern China. Jiuding Capital’s Lei CAI said, “Although we have mastered the market position of Hongqi, we did detailed DD investigation, too.”
Cao Shiru began to start her own business through reconstructing Redflag Shopping Center with over 40 coworkers and a loan of more than 10 million yuan in June 2000 when she was 48. At that time, the market competition in Chengdu was severe. Large-sized local retail enterprises Renmin Mall, Department Store, Chengdu BHG and Redflag Shopping Center together with foreign firms Trust-Mart, Carrefour, Ito Yokado and Price Smart were in severe competitive battles. Under the background, Hongqi selected to do community chain supermarket businesses to meet local residents’ demands on daily consumer goods. Usually, its stores in different sizes (20~1,000 m2) were set up according to community maturity and visitor flow rate to offer daily necessaries including tobacco, wines, snack foods and household care products.
“In fact, we appreciate President Cao and her team’s strong market controlling ability among the valiant market fluctuation,” said Lei CAI.
“During investment, we comply with the consumption upgrading of Chinese citizens and the urbanization of Chinese society, take opportunities of industrial centralization and capitalization of China’s economy to invest in sectors of consumer goods, sales channels, medicines and medicaltreatment and agriculture,” said Lei CAI.
Currently we have finished the investments in Baiyang Food, WSM, Qili Pharmaceutical, Golden Monkey, Powerdone Pharmaceutics, Jingya Restaurant, etc.