Yesterday, RT-Mart's parent company, Sun Art Retail Co., Ltd. (06808. HK) recently announced that it expects its after-tax profit for the six months ended September 30, 2024 to improve significantly, and to achieve a loss-for-profit ratio compared with the same period last fiscal year, with an after-tax profit of approximately RMB150 million to RMB200 million for the six months ended September 30, 2024 (unaudited) calculated in accordance with Hong Kong Financial Reporting Standards, compared with an after-tax loss of RMB378 million in the same period last year.
FMCG understands that at the same time, the company has applied to the Stock Exchange for the resumption of trading of shares from 9 a.m. on October 16, 2024 after the publication of this announcement.
Potential acquirers, including DCP and Hillhouse Investment, have been considering a takeover of Sun Art Retail, according to people familiar with the matter. Currently, Alibaba indirectly holds approximately 73.66% of the issued share capital of the Company through its wholly-owned subsidiaries Jixin Holdings Limited and Taobao China Holdings Limited, while New Retail Strategic Opportunities Investments 1 Limited, an investment company wholly owned by investment funds of Alibaba Group that can exercise significant influence over its investment decisions, holds approximately 5.04% of the issued share capital of the Company.
According to Alibaba Group, discussions are ongoing between the Group and potential offerors to make any irrevocable undertakings on the material terms of the possible offer, and Alibaba Group is also in discussions with certain other parties, which may not result in any agreement or transaction; The Interested Offeror is not associated with the Company or any of its affiliates.
In addition, according to Sun Art Retail's recent announcement, on September 27, 2024, the company received an engagement letter from a prospective offeror, who indicated its intention to make a voluntary conditional offer with preconditions for all of the company's issued shares subject to various matters, and proposed to cancel all outstanding share option offers issued by the company.
Sun Art Retail's expected improved profit after tax was mainly due to the stabilization of same-store arrivals and positive same-store sales. At the same time, the cost reduction and efficiency increase have been rapidly promoted, and the results have been remarkable. At present, the Group is continuing to build the core advantages of price competitiveness, strengthening fortress products, reshaping the price image, rapidly promoting the "Thumb Super Save" series of mental products, optimizing the selection of products in different price ranges, and enhancing their price competitiveness.