Jiuding Investment has committed 150 million CNY to Hongqi Chain, a prominent community convenience supermarket in Sichuan, believing in its significant growth potential and alignment with consumer trends.

Target Company Overview

The target of this investment is Hongqi Chain, a highly regarded community convenience supermarket chain in Sichuan Province, China. Founded in 2000 by Cao Shiru, who previously worked for a state-owned enterprise, the company has grown significantly over the years. Now, Hongqi Chain operates nearly 1,000 stores across Chengdu and employs over 10,000 staff members. The supermarket emphasizes daily consumer needs, offering a wide range of products including groceries, household necessities, and more.

Hongqi Chain has established a strong brand in the local market, benefiting from its historical background tied to local sentiments surrounding the name 'Hongqi'. The brand has received various accolades, including recognition as one of the top brands in Chengdu and Sichuan province. Furthermore, the company ranks among China's top 500 service companies and the top 100 retail enterprises nationwide.

Industry Overview in Sichuan

The retail industry in Sichuan is evolving, paralleling trends seen in more developed coastal regions of China. A significant shift has occurred from large hypermarkets to community convenience st