(Yicai Global) Sept. 27 -- New Hua Du Supercenter Co [SHE:002264], which engages in chain operation of hypermarkets, supermarkets and department stores, intends to transfer 10 percent of its stake to China's e-commerce giant Alibaba Group Holding Ltd. [NYSE:BABA]. The pair will form partnership in supply chain and retail business transformation and upgrading, New Hua Du said in a statement.

The company's controlling shareholder New Huadu Industrial Group Co. signed an equity transfer agreement with both Alibaba's subsidiary in Chengdu in southwest China's Sichuan province, Alibaba (Chengdu) Education & Software Technology Co., and an equity investment fund of Alibaba yesterday to transfer 5 percent of the shares of the company to each of the Alibaba subsidiaries, respectively, New Hua Du said in a statement.

The statement did not disclose the specific transaction amount of the equity transfers. New Huadu Group held 44.67 percent stake in New Hua Du before the deal as its largest shareholder, data show.

New Hua Du also signed a cooperation agreement yesterday with a subsidiary of Alibaba in Hangzhou to share their supply chain synergy and link with Alibaba's e-commerce resources, including membership and payment system. The two sides also plan to set up a joint venture to make investment, construction and operation of innovative stores.

The cooperation with Alibaba's brand effect, advanced management concepts and management models will help the New Hua Du to achieve retail business transformation, the statement said, adding that through the introduction of strategic investors, the company will significantly enhance its competitiveness and promote the development of new business.