(Yicai Global) April 18 -- Chinese e-commerce giant JD.Com will deepen its partnership with consumer electronics retailer Wuxing Electric Appliance with a new investment to leverage its New Retail strategy.
JD.Com penned a deal with Wuxing to offer the biggest shareholder Jiayuan Chuangsheng Holding Group CNY1.3 billion (USD190 million), paid in cash and absorbed debt, for a 46 percent stake in the electric appliances firm in case certain conditions are met, state-backed The Paper reported yesterday.
JD.Com will also provide Jiayuan Chuangsheng with a loan of CNY1 billion to further solidify their partnership, the report added.
JD.Com and Wuxing will draw on their advantages and promote the seamless integration of online and offline retail, according to the report. Beijing-based JD.Com will use its supplier network, logistics, warehousing, finance and technology to build unbounded retail experience stores and a more effective supply chain for Wuxing.
The pair inked their first cooperation agreement in 2017, and Wuxing opened a flagship store on JD.Com's e-commerce platform on the same day.
Founded in 1998, Wuxing has over 220 offline chain stores in seven provinces including Jiangsu and Zhejiang. Its online stores are mainly concentrated in second-tier and smaller cities, occupying a high market share in eastern China.
Editor: Emmi Laine