Core Viewpoint - The stock price of Sanjiang Shopping fell significantly by 9.63% on November 6, 2023, following a share reduction announcement by its second-largest shareholder, Alibaba Zeta Information Technology [1][3]. Group 1: Stock Performance - Sanjiang Shopping's stock opened lower and experienced a decline of 9.91% during the trading session, closing at 12.58 yuan per share, resulting in a market capitalization of 6.89 billion yuan [1][2]. - The stock's highest price during the day was 13.00 yuan, while the lowest was 12.54 yuan, with a trading volume of 37,320 shares [2]. Group 2: Shareholder Actions - Alibaba Zeta announced plans to reduce its holdings by up to 16.43 million shares, representing no more than 3% of the total share capital, due to its own business arrangements [3][5]. - The estimated value of the shares to be sold, based on the closing price of 13.92 yuan on November 5, is approximately 229 million yuan [5]. Group 3: Historical Context - This is not the first time Alibaba Zeta has reduced its stake in Sanjiang Shopping; a previous reduction occurred just over two months prior, where it sold 5.48 million shares, accounting for 2% of the total share capital [5]. - Sanjiang Shopping reported a revenue of 1 billion yuan for Q3 2025, a year-on-year decrease of 0.81%, and a net profit of 23.12 million yuan, down 46.64% year-on-year [5]. Group 4: Company Background - Sanjiang Shopping is a large retail chain based in Zhejiang Province, established in 1995, primarily operating community fresh supermarkets, and was listed on the Shanghai Stock Exchange in 2011 [5]. - In April 2023, Sanjiang Shopping entered into a cooperation agreement with Alibaba's Hema, allowing the use of the Hema Fresh model until March 31, 2026, but decided not to renew the agreement after its expiration [6].

Core Viewpoint - The cooperation agreement between Sanjiang Shopping and Hema Company will expire on March 31, 2026, and will not be renewed, as per Hema's strategic decision based on current market conditions [1][3]. Group 1: Cooperation Agreement Details - Sanjiang Shopping signed a strategic cooperation framework agreement with Alibaba on November 18, 2016, allowing the company to operate innovative stores under the Hema model [1]. - A subsequent cooperation agreement was signed on April 1, 2023, which authorized Sanjiang Shopping to use the Hema model until March 31, 2026 [2]. Group 2: Progress of Cooperation Agreement - Recently, Sanjiang Shopping received a notification from Hema Company stating that they will not renew the cooperation agreement upon its expiration due to changes in the market environment and Hema's overall strategic development plan [3]. - Hema Company suggested that both parties initiate discussions regarding arrangements for the end of the cooperation period and proposed the establishment of a special working group to facilitate these discussions [3]. Group 3: Impact on the Company - The termination of the cooperation agreement is expected to impact sales at the Ningbo Hema stores, and the company plans to negotiate transition and handover matters with Hema to minimize disruption to customer shopping experiences [4].

Core Viewpoint - The cooperation agreement between Sanjiang Shopping and Hema Company will expire on March 31, 2026, and will not be renewed due to changes in the market environment and Hema's strategic development plans [1][2]. Group 1: Cooperation Agreement Details - Sanjiang Shopping signed a cooperation agreement with Hema Company, allowing the use of the Hema Fresh model in designated areas until March 31, 2026 [1]. - Hema Company has notified Sanjiang Shopping of its decision not to renew the cooperation agreement upon its expiration [2]. Group 2: Impact and Transition Plans - The expiration of the cooperation agreement is expected to impact sales at the Ningbo Hema stores, and the company plans to discuss transition and handover arrangements with Hema to minimize customer disruption [2]. - A special working group is suggested to be formed for efficient communication and implementation of the transition plans [2].