Chongqing Department Store Denies Alibaba Involvement in Mixed-Ownership Reform

Chongqing Department Store Denies Alibaba Involvement in Mixed-Ownership Reform

Xu Wei

Date: Mon, 04/16/2018 - 13:38 / source:Yicai
Chongqing Department Store Denies Alibaba Involvement in Mixed-Ownership Reform
Chongqing Department Store Denies Alibaba Involvement in Mixed-Ownership Reform

(Yicai Global) April 16 -- Chongqing Department Store Co. has cleared up speculation that China’s largest online retailer, Alibaba Group Holding Co., will partake in its parent’s mixed-ownership reform.

Chongqing General Trading Group is not in talks with Alibaba or any of its affiliates, the chain store operator said in a statement yesterday, adding that there is still uncertainty over the introduction and identity of strategic investors for the restructuring.

CDS said on April 10, when it resumed share trading after a suspension starting March 23 due to a possible ownership change, that CGT Group planned to bring in two strategic investors to conduct a mixed-ownership reform. As part of the reorganization, current sole owner Chongqing State-Owned Assets Supervision and Administration Commission would see its stake cut to 45 percent, with the new investors taking 45- and 10-percent stakes.

In a report yesterday, Chinese news outlet the Economic Observer cited people with knowledge of the matter as saying a department store under Alibaba was interested in the reform and may look to benefit from the change by investing in the CDS chain. Alibaba’s public relations team denied any such plans, the report added.

CDS took in CNY580 million (USD92 million) in profit last year, up 71 percent on the year as revenue dipped 2.75 percent to CNY32.9 billion (USD5.2 billion), according to its financial results.

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Keywords: Chongqing Department Store Co., Alibaba