Wangfujing Group: Terminated the transfer of its subsidiary Beijing Wangfujing Department Store Commercial Property Management Company, as two listings failed to attract interested buyers.

Log in to the Sina Finance app, search 【information disclosure】 to view more evaluation tiers

On April 3, Wangfujing Group (600859.SH) released an announcement regarding the termination of the transfer of equity in its subsidiary.

The announcement shows that on October 29, 2024, the 14th meeting of the 11th session of the board of directors of Wangfujing considered and approved the proposal on “public listing to dispose of equity in a subsidiary”, agreeing that the company would transfer, through the Beijing Equity Exchange, 100% of the equity of Beijing Wangfujing Department Store Commercial Property Management Co., Ltd., a wholly owned subsidiary, and that the initial listing price would not be lower than the appraised value after state-owned asset appraisal and record filing.

After the board of directors approved the proposal, Wangfujing actively promoted the audit and appraisal work involved in this equity transfer, the record-filing of the state-owned asset appraisal, and the public listing process on the Beijing Equity Exchange.

On March 21, 2025, the project for the 100% equity of the commercial property company was listed for the first time on the Beijing Equity Exchange. The listing price was the appraised value after the filing of the appraisal of state-owned assets, which was RMB 64221.08 million. The first listing period expired without any intent-to-acquire party being collected. Pursuant to the authorization of the board of directors, Wangfujing reduced the listing price of the equity by 10% to RMB 57798.972 million and listed it again; by the end of the second listing period, no intent-to-acquire party had been collected either.

On April 3, 2026, Wangfujing held the 3rd meeting of the 12th session of the board of directors. With a voting result of 11 in favor, 0 against, and 0 abstentions, it considered and approved the proposal on “termination of the transfer of equity in a subsidiary”. Given that the quotation in the public market during the public listing period did not meet expectations, the board decided to terminate this equity disposal matter.

Wangfujing Group stated that, to improve asset returns, Wangfujing has leased out the company’s main assets of the commercial property company to third parties. Going forward, the company will continue to actively seek multiple ways to advance the relevant work under the premise of strict compliance with laws and regulations, and will promptly fulfill information disclosure obligations.

Based on financial data from 2021 to the present, Wangfujing Group is overall in a stage of pressure in traditional retail, cultivating the duty-free business, and experiencing pains in strategic transformation. Operating performance shows obvious fluctuations. In 2025, it is expected to turn from profit to loss for the full year, with a significantly increased performance pressure.

Wangfujing Group’s disclosed 2025 performance indicates that it expects net profit attributable to shareholders of the listed company for 2025 to be between -RMB 45 million and -RMB 23 million, which would result in losses compared with the same period last year. After deducting non-recurring gains and losses, the company expects net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses to be between -RMB 160 million and -RMB 110 million.

From the business structure perspective, the company’s O2O/“outlet” business format shows relatively stable performance and remains an important source of profit. However, the traditional department stores and shopping malls—those with the largest share—have continued to shrink under pressure from e-commerce and changes in consumer demand. In recent years, the company has closed several inefficient stores multiple times. Store closures, provisions for store impairment, asset impairment and operating expenses have continued to drag down profits. Although the company has scarce duty-free licenses and has laid out duty-free operations for Hainan’s island route and ports, as well as in-city duty-free businesses, the current scale of the duty-free business is still small and its contribution to profitability is limited. It has not yet formed a new growth engine, and it has not been able to effectively offset the decline in traditional businesses.

According to the information, the company was founded in 1955. Its predecessor was “Beijing Department Store, the First Store in New China.” In 1994, the company’s stock was listed on the Shanghai Stock Exchange. In 2021, it completed a major asset restructuring through an absorption merger of Shoushang Co., Ltd. In October 2022, the company was approved to operate island duty-free business in Wanning City, Hainan Province.

As of the end of 2024, Wangfujing had covered large-scale retail networks across China’s seven major economic regions and was involved in 38 key cities. The 80 retail stores it operates have a total gross floor area of 5.432 million square meters.

For a massive amount of information and precise interpretation, all within the Sina Finance app