(Yicai) Dec. 20 -- Yonghui Superstores said the Chinese supermarket giant sold all of its shares in heavily indebted retailer Zhongbai Holdings Group for a CNY46 million (USD6.3 million) loss.

Yonghui sold its 9.9 percent stake in Zhongbai held through Chongqing Yonghui Superstores for CNY440 million (USD60.3 million), the Fuzhou-based company announced on Dec. 18. It had held the equity for more than 11 years.

Both Yonghui and Zhongbai have had operational and financial difficulties in recent years as a result of the hit to brick-and-mortar retailing from the Covid-19 pandemic, escalating competition, and the rapid expansion of e-commerce. Since 2021, Yonghui has reported losses in excess of CNY8 billion (USD1.1 billion), while Zhongbai has lost more than CNY1 billion (USD137 million).

Yonghui has sold several assets in the past year, including stakes in Zhuhai Wanda Commercial Management Group, Hongqi Chain, and YH Financial Service, from which the company will have recovered a total of over CNY6 billion.

Zhongbai [SHE: 000759] closed 10 percent lower at CNY8.42 (USD1.15) a share in Shenzhen today, after gaining by the same amount yesterday. Yonghui’s stock [SHA: 601933] fell 0.6 percent to CNY6.22 in Shanghai.

In September, budget retailer Miniso revealed plans to become Yonghui’s largest shareholder by buying a 29.4 percent stake in the company for CNY6.3 billion. In another statement yesterday, Yonghui said Miniso would not have control of the firm, which will remain without an actual controller and controlling shareholder.

Editors: Shi Yi, Futura Costaglione