OREANDA-NEWS. August 05, 2011. China Resources Enterprise, Limited (HKEx: 00291) (‘The Company’ and together with its subsidiaries, ‘The Group’) announced its acquisition of a 100% interest in Jiangxi Hongkelong Department Store Investment Company Limited (‘Hongkelong Department Store’) for a total consideration of RMB3.69 billion (equivalent to approximately HKD 4.46 billion), which will be payable by way of cash. Hongkelong Department Store is a competitive retail chain operator in Jiangxi Province, reported the press-centre of CR Snow.

Through the acquisition, the Group immediately expands its retail business into Jiangxi Province and gains an advantageous market position in the region, thereby further enhancing its network and competitiveness in China’s retail market. As at the end of December 2010, Hongkelong Department Store recorded a turnover of RMB2,550.70 million and earnings of RMB93.18 million.

Hongkelong Department Store has 21 hypermarkets, and is a well-known retail chain with the largest scale and number of stores in Jiangxi Province. The acquisition will facilitate the Group's national expansion strategy that emphasizes regional leadership and synergy on a multi-format business platform. As one of the leading consumer goods companies in China, the Group brings to the newly acquired business its strong retail management expertise, and extensive retail and distribution network. Meanwhile, with a long operational history in Jiangxi Province, Hongkelong Department Store offers the Group a wealth of local market knowledge. Leveraging the complementary strengths of both companies, the acquisition will propel the development of the Group’s retail business. As at the end of March 2011, the Group operated over 3,300 stores in China, mainly comprising supermarkets, "Chinese Arts & Crafts" stores, "CR Care" stores, "VivoPlus" health and beauty stores and "Pacific Coffee" stores.

Mr. Chen Lang, Chief Executive Officer of the Company, said, “The acquisition is in line with the Group's strategy of focusing on building our leading positions of our core businesses comprising retail, beer, food and beverage. It allows us to expand our retail business into Jiangxi Province with an advantageous market position, which fuels the continued growth of our retail business. Through business integration including the area of supply chain, we believe that the regional advantage gained from the acquisition of Hongkelong Department Store will become increasingly significant in the future as we see this acquisition as an important foundation for the development of our retail business in South-East China.”