Supermarket Chain Renrenle to Raise RMB 2.3 Bln for O2O, E-commerce Businesses
Renrenle, 8/06/15
Chinese supermarket chain Renrenle Commercial Group (002336.SZ) has announced plans for a private placement of up to 132 mln newly issued shares, raising up to RMB 2.32 bln for O2O, e-commerce, and supply chain development initiatives. Of the total, the company intends to invest RMB 1.39 bln in its local O2O supermarket business, RMB 407 mln in its e-commerce platform, and RMB 535 mln to develop its supply chain.
Renrenle plans to open 500 O2O retail supermarkets, which will sell everyday products and fresh food, and offer last-mile delivery and other community value-added services. Renrenle expects that once it has opened these stores, yearly turnover will reach RMB 535 mln, with yearly profits reaching RMB 260 mln.
Renrenle will also build an e-commerce platform titled Renren Legou, which will include a website and mobile app. Customers can purchase items online and pick them up at Renrenle's O2O supermarkets or designated pick-up points.
Renrenle will also upgrade its refrigerated fresh food logistics system, and improve its current distribution center.
Keywords: Renrenle financing food O2O m-commerce e-commerce Internet retail logistics fresh food 002336.SZ
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