Alibaba Group Holding Limited has announced the sale of its shares in Hong Kong-listed Sun Art Retail Group. This comes as DCP Capital, the Chinese private equity firm, has agreed to acquire Alibaba's more than 70% stake in Sun Art.
Following completion of the disposal, Alibaba will no longer hold any equity interest in Sun Art and it will cease to be accounted for as a subsidiary of the company. The sale is worth a reported $1.6 billion (€1.5 billion).
Sun Art is involved in operating brick-and-mortar stores and online sales channels where merchandise, mainly fresh products, FMCG, textile, electric appliance and general goods, are made available for sale, with a coverage of more than 200 cities nationwide and ownership of more than 120 properties in Mainland China.
The unaudited net assets of Sun Art as at September 30, 2024 (based on Sun Art’s interim report for the six months ended September 30, 2024) amounted to approximately RMB 21,798 million (€29 million).
Launched in 1999, Alibaba.com is one of the leading platforms for global wholesale trade. The company serves buyers and suppliers around the world and offers millions of products in over 40 different major categories, including consumer electronics, machinery and apparel.
Alibaba indicated in its latest filing that it plans to increase focus on core ecommerce operations. Last year, Alibab formed a new e-commerce business group, combining platforms like Taobao, Tmall, AliExpress, Alibaba.com, Lazada, Trendyol, 1688, and Idle Fish.
In 2024, Alibaba introduced its open-source AI reasoning model, QwQ, with analytical capabilities, and ACE, a next-level image tool for creative tasks. Joe Tsai, Chairman of Alibaba Group, recently called AI 'a critical growth driver.'
