(Yicai Global) June 19 -- Hong Kong's Shirble Department Store Holdings China unit will lease supermarkets to Alibaba Group Holding's grocery chain Hema.
Shirble will lease 12 stores to Hema Network Technology, the Shenzhen-based grocer said in a statement this morning, adding that within two years these stores will be rebranded as Hema Fresh outlets. The firm did not disclose any financial details about the deal.
The announcement sent Shirble's stocks 22.03 percent up to HKD0.72 in the morning on a generally bearish day for the Hong Kong stock market.
This cooperation will lower costs and generate a stable flow of income, which will boost the firm's overall profitability, Shirble said.
Editor: Emmi Laine