Shanghai Bailian Group Acquires 81% Stake in The Bálancing Boutique for 71.16 Million RMB

8月 21, 2023

After the close of trading on August 14th, Shanghai’s leading retail company, Shanghai Bailian (Group) Co., Ltd. (SH:600827), announced its intention through its subsidiary, Bailian Commercial Brand, to invest 71.16 million RMB in acquiring an 81% stake in the bálancing, held by Shangtou Group.

the bálancing was jointly established by Shangtou Group and Bailian Commercial Brand, with Shangtou Group holding an 81% stake and Bailian Commercial Brand holding 19%. Following the completion of this transaction, the bálancing will become a wholly-owned subsidiary of Bailian Group and be included in the company’s consolidated financial statements.

Currently, the bálancing operates three existing stores: Fissler, Taikoo Hui Flagship Store, and Grand Gateway 66. After several years of incubation, cultivation, and development, the bálancing has entered a phase of steady growth, having added more influential foreign and domestic designer brands to its collection.

According to the announcement, the revenue of the bálancing in 2021, 2022, and January to May 2023 was 35.54 million RMB, 16.51 million RMB, and 10.70 million RMB, respectively. The net losses for the same periods were 17.38 million RMB, 22.21 million RMB, and 10.14 million RMB. The total assets were 52.47 million RMB, 60.20 million RMB, and 100 million RMB, respectively.

Regarding its development direction, the bálancing will adhere to a cautious expansion principle. In terms of store size, it will focus on medium-sized stores. For location selection, it will target cities with higher fashion and consumer power, primarily in the first and second-tier cities domestically, positioned as youth and fashion-oriented malls.

The group stated that the next 2-3 years present a window of opportunity for the development of the boutique market. Bailian Group’s boutique stores will continue to expand to enhance market competitiveness. This equity acquisition through Bailian Commercial Brand is expected to facilitate a streamlined ownership and management relationship for the bálancing, enhancing the company’s core competitive edge. Additionally, based on the future operational development plan for boutique stores, standalone shops will be opened in company-affiliated malls.

| Source: Bailian Group Announcement

| Image Credit: the bálancing @Weibo

| Editor: LeZhi