Zhongmin Baihui Retail Group has partnered Mingfa (Longhai) Real Estate to operate a retail space in a mall.
This comes after the retail company’s wholly owned subsidiary Zhongmin Baihui (China) Retail Group and Mingfa (Longhai) signed an agreement on July 26 to establish a JV company.
Zhongmin Baihui (China) and Mingfa (Longhai) will have shareholdings of 30% and 70%, respectively, in the JV company, which has a registered share capital of RMB18 million ($3.8 million).
The JV company will operate a 90,000 sqm of built-up area of retail space in Longhai Mingfa Commercial Square for 20 years.
Zhongmin Baihui says the transaction will be funded through its internal resources.
It adds that the transaction is not expected to have any material impact on its earnings and net tangible assets for the financial year ending Dec 31, 2021.
Shares of Zhongmin Baihui were last traded at 70 cents on July 28.
