Sanjiang Shopping Club Co.,Ltd (601116.SS) Bundle
Born in Ningbo in 1995 with the Shuguang Store and reshaped through a 2008 restructuring, Sanjiang Shopping Club (listed on the Shanghai Stock Exchange as 601116 since March 2, 2011) now runs a regional empire of over 160 stores across Zhejiang and reported revenue of 3.89 billion CNY with net income of 135.96 million CNY in 2024; the company's market capitalization sits at about 9.14 billion CNY, backed by 547.68 million shares outstanding (insiders ~3.16%, institutions ~0.76%), seven Hema stores in Ningbo that helped recent growth, and a cooperation with Hema set to expire on March 31, 2026-while Alibaba affiliate Hangzhou Alibaba Zetai trimmed holdings by 2.00% (5.477 million shares) in August 2025-so dive in to explore Sanjiang's ownership, mission, operating model, revenue mix from supermarkets, online sales, supply-chain services and diversified businesses like software and wholesale, and what those hard numbers mean for its market position and future moves
Sanjiang Shopping Club Co.,Ltd (601116.SS): Intro
Sanjiang Shopping Club Co.,Ltd (601116.SS) is a Zhejiang-based retail operator founded in September 1995 with its first Shuguang Store in Ningbo. The company transitioned through corporate restructuring in November 2008 to reach its current corporate form and completed its initial public offering on the Shanghai Stock Exchange on March 2, 2011 (ticker: 601116). Over three decades it has expanded from a single store into a multi-format retail group focused on supermarkets, community stores, and strategic partnerships with new-retail platforms.- Founded: September 1995 - Shuguang Store, Ningbo
- Restructuring to current corporate form: November 2008
- Listed: March 2, 2011 (Shanghai Stock Exchange, 601116.SS)
- Hema stores: 7 stores in Ningbo as of end-2024
- Hema cooperation announced to expire: March 31, 2026 (announcement August 2025)
- Total stores: Over 160 stores across Zhejiang Province by late 2025
| Milestone | Date / Status | Notes |
|---|---|---|
| Foundation | September 1995 | Shuguang Store opened in Ningbo |
| Corporate restructuring | November 2008 | Became Sanjiang Shopping Club Co.,Ltd current form |
| IPO (Shanghai) | March 2, 2011 | Ticker: 601116.SS |
| Hema partnership stores | 7 (end-2024) | All located in Ningbo; cooperation to expire 31-Mar-2026 |
| Store network size | Over 160 (late 2025) | Coverage: multiple Zhejiang cities including Hangzhou, Shaoxing, Taizhou, Lishui, Jiaxing, Zhoushan |
- Retail sales - primary revenue from grocery, fresh produce, packaged foods and daily consumables across supermarket and community-store formats.
- Private-label and margin management - controlling assortment and supplier terms to protect gross margins in a low-margin grocery sector.
- Omnichannel and delivery fees - incremental revenue from online order fulfillment, last-mile delivery and value-added services (cold-chain fulfillment for fresh items through strategic partnerships).
- Leasing and in-store services - rental and service income from concessionaires, franchise/agency arrangements, and promoted product placements.
- Supply-chain optimization and procurement scale - cost savings from centralized procurement, distribution-center efficiencies and logistics partnerships that improve EBITDAR.
- Large-format supermarkets for weekly shopping and categories with higher SKU counts.
- Community convenience stores for daily and quick-purchase needs in residential neighborhoods.
- Partner-branded new-retail outlets (Hema cooperation) designed to integrate online ordering and rapid fulfillment for fresh groceries - 7 Hema stores in Ningbo as of end-2024.
- March 2, 2011 - Shanghai listing provided capital for regional expansion.
- End-2024 - 7 Hema stores operational in Ningbo, contributing to fresh-commerce growth.
- August 2025 - Company announced Hema cooperation agreement will expire on March 31, 2026; parties opted not to renew.
- Late 2025 - Store network expanded to over 160 outlets across Zhejiang Province.
- Same-store sales growth (SSSG) - indicates organic demand strength in existing network.
- Gross margin and fresh-category margin - fresh produce margins and waste rates critically affect profitability.
- Store-opening cadence vs. churn - net store additions and payback periods per new store.
- Online penetration & delivery economics - order frequency, AOV (average order value), and last-mile cost per order.
- Retail inventory turnover and working-capital days - impacts cash conversion cycle and liquidity needs.
Sanjiang Shopping Club Co.,Ltd (601116.SS): History
Sanjiang Shopping Club Co.,Ltd (601116.SS) is a retail and shopping mall operator established in the 1990s and listed on the Shanghai Stock Exchange. Over its history the company expanded from local department stores into a regional shopping-club model combining retail, property leasing and mall management. Strategic ties with major e-commerce and retail players have influenced its shareholder base and operational partnerships.- Market capitalization (late 2025): ~9.14 billion CNY.
- Shares outstanding: 547.68 million (slight decrease of 0.03% over the past year).
- Insider ownership: ~3.16% of shares outstanding.
- Institutional ownership: ~0.76% of shares outstanding.
- Notable recent change: In August 2025, Hangzhou Alibaba Zetai (an Alibaba subsidiary) reduced holdings by 2.00% - selling 5.477 million shares - and terminated a previously disclosed reduction plan.
| Metric | Value |
|---|---|
| Market Cap (CNY) | 9.14 billion |
| Shares Outstanding | 547.68 million |
| Year-on-year change in shares | -0.03% |
| Insider Ownership | 3.16% |
| Institutional Ownership | 0.76% |
| Alibaba (Hangzhou Alibaba Zetai) reduction (Aug 2025) | 5.477 million shares (2.00%) |
- Ownership profile: mix of public retail investors with limited institutional participation and moderate insider stakes.
- Investor implications: relatively low institutional weight suggests shareholder base is retail-heavy; recent large-holder adjustment (Alibaba subsidiary) signals occasional strategic repositioning by major market players.
Sanjiang Shopping Club Co.,Ltd (601116.SS): Ownership Structure
Sanjiang Shopping Club Co.,Ltd (601116.SS) positions itself around the compact mission 'live a better life with less money,' prioritizing affordability, convenience and daily freshness across its formats. The company's vision - to build the Great Wall of China Chain and become a national commercial brand - underpins expansion strategies and brand investments.- Mission: Enable people to 'live a better life with less money' by offering affordable, convenient everyday shopping.
- Vision: Build the Great Wall of China Chain and establish a national commercial brand with broad recognition.
- Customer promise: 'Fresh, affordable, every day' - daily freshness and low prices across fresh produce, staples and household goods.
- Core values: honesty and trustworthiness; putting others before oneself; diligence and thrift; learning and innovation.
| Metric | Data |
|---|---|
| Founded | 1999 |
| Headquarters | Taizhou, Zhejiang, China |
| Listing | Shanghai Stock Exchange - 601116.SS |
| Approx. store count | ~1,300 stores (multi-format: supermarkets, community stores) |
| Employees | ~20,000 |
| FY 2023 Revenue (approx.) | RMB 15.2 billion |
| FY 2023 Net Profit (approx.) | RMB 0.8 billion |
| Key shareholders | Founder/management group, institutional investors, public float |
- Retail sales across physical supermarkets and community stores - primary revenue source via SKU margins on fresh food, packaged goods and daily consumables.
- Private label and bulk procurement lower COGS, enabling "affordable" pricing strategies.
- Supply chain optimization (local sourcing, centralized distribution) reduces spoilage and logistics cost, preserving margins on perishable categories.
- Ongoing store expansion, membership/loyalty programs and promotional campaigns drive footfall and spend per trip.
Sanjiang Shopping Club Co.,Ltd (601116.SS): Mission and Values
Sanjiang Shopping Club Co.,Ltd (601116.SS) positions itself as a community-focused retail and supply-chain service provider centered in Zhejiang Province, with a strategy that blends traditional supermarket formats, neighborhood convenience, and online-integrated retail. The company's stated mission emphasizes improving local community life through accessible fresh food, efficient supply chains, and integrated digital services, while its values prioritize customer trust, food safety, community integration, and operational resilience. How it works - core operations and channels- Retail network: operates food supermarkets, community stores, and neighborhood stores primarily across Zhejiang Province, serving daily consumer needs with fresh produce, groceries and household items.
- Hema collaboration: operated 7 Hema stores (all in Ningbo) as of end‑2024, leveraging Alibaba's Hema model for fresh-food omni-channel integration and digital fulfilment.
- Online sales & O2O: integrates online ordering, local distribution and in-store fulfilment to deliver faster last‑mile service and expand reach beyond walk-in shoppers.
- Supply chain & wholesale: provides supply chain management, wholesale and trading services to optimize procurement, warehousing and distribution across its retail footprint.
- Diversified services: engages in computer software development and consulting, vegetable market management, tobacco retail and general freight to diversify revenue streams and support core retail logistics.
- End‑2024: 7 Hema stores in Ningbo contributed to revenue growth through higher ASPs on fresh categories and digital order volumes.
- August 2025 announcement: the cooperation agreement with Hema was disclosed to expire on March 31, 2026; both parties decided not to renew the agreement, prompting operational adjustments and an increased focus on proprietary and community channels thereafter.
- Adaptation: the company is actively adapting formats and fulfillment to changing customer preferences and post‑partnership channel mix.
| Revenue Stream | Description | Role in value chain |
|---|---|---|
| Retail sales | In-store sales at supermarkets, community and neighborhood stores | Primary revenue generator for daily consumer products |
| Online & O2O sales | Orders from web/app with local fulfilment and delivery | Higher-margin convenience and fresh category sales |
| Wholesale & trading | Bulk supply to smaller retailers and institutional buyers | Stabilizes procurement volumes and improves gross margin |
| Supply chain services | Logistics, warehousing, and distribution services internally and for third parties | Captures logistics margin and enhances inventory turns |
| Software & consulting | Retail IT solutions, store systems and consulting projects | Incremental revenue with higher margin profile |
| Other operations | Vegetable market management, tobacco retail, freight services | Diversifies income and reduces dependence on single channel |
- Store footprint concentration: primary concentration in Zhejiang-this regional focus enables strong local supply relationships but creates exposure to local demand cycles.
- Hema exit implications: with the announced non‑renewal effective March 31, 2026, Sanjiang will reallocate resources from co‑branded Hema operations toward boosting its own omni‑channel capabilities and neighborhood store penetration.
- Channel mix: the company's mix of retail, online, wholesale and services allows flexible margin management-retail and online provide top-line sales, wholesale and supply‑chain services support gross‑margin stability.
Sanjiang Shopping Club Co.,Ltd (601116.SS): How It Works
Sanjiang Shopping Club Co.,Ltd (601116.SS) operates a hybrid omnichannel retail and supply-chain business focused primarily in Zhejiang Province. Its core model combines physical grocery and daily-necessities stores with e-commerce, wholesale/trading, logistics and ancillary service lines to capture consumer and business demand across fast-moving consumer goods.- Physical retail network: more than 160 stores across Zhejiang offering fresh produce, packaged foods, household goods and tobacco retail.
- Online sales & e-commerce: direct-to-consumer online ordering and integration with third-party platforms to expand reach beyond store footprint.
- Supply chain & logistics: in-house procurement, distribution and general freight services supporting store replenishment and third-party clients.
- Wholesale & trading: B2B sales to restaurants, markets and smaller retailers; vegetable market management operations.
- Value-added services: computer software development and consulting for retail systems, plus operational management services for markets.
- Store sales - primary income from front-end retail of food and daily necessities.
- E-commerce revenue - online order sales, platform commissions and delivery fees.
- Wholesale/trading margins - bulk sales and distribution contracts.
- Logistics & freight - fees from general freight services and third-party logistics engagements.
- Services & software - licensing, consulting and market-management fees.
| Metric | 2024 | Notes |
|---|---|---|
| Total revenue (CNY) | 3.89 billion | Down 0.53% YoY |
| Net income (CNY) | 135.96 million | Reported for 2024 |
| Store count | Over 160 | All within Zhejiang Province |
| Major non-retail lines | Logistics, wholesale, software, market management, tobacco retail | Diversified revenue streams |
| Notable shareholder action | Hangzhou Alibaba Zetai reduced holdings by 2.00% (5.477 million shares) | Reduction announced and plan terminated in Aug 2025 |
- Procurement & supplier management centralizes purchases to secure scale discounts and fresh supply.
- Distribution hubs route stock to stores and support B2B wholesale customers using internal logistics teams.
- Stores act as both retail outlets and last-mile fulfillment nodes for online orders.
- Data from POS and e-commerce platforms feeds software and consulting services that optimize inventory, pricing and promotions.
- Ancillary businesses (tobacco retail, market management) provide margin diversification and steady fee income.
Sanjiang Shopping Club Co.,Ltd (601116.SS): How It Makes Money
Sanjiang Shopping Club generates income primarily through its regional community retail network, combining in-store sales, local supply-chain integration, and complementary services to capture everyday consumer spending across Zhejiang Province.- Core retail sales from over 160 stores across Zhejiang (Ningbo, Hangzhou, Shaoxing, Taizhou, Lishui, Jiaxing, Zhoushan).
- E‑commerce and omnichannel fulfillment linking online orders with store pickup and home delivery.
- Private-label and cross-sourcing margins via supplier agreements and centralized procurement.
- Store-level services: merchandising fees, advertising, and vendor promotions.
- Value-added services: loyalty programs, membership fees, logistics support, and financial products for suppliers/customers.
| Metric | Value / Note |
| Market capitalization (late 2025) | ≈ 9.14 billion CNY |
| Store footprint | Over 160 stores (Zhejiang Province) |
| Key partnership status | Cooperation with Hema expires 31 Mar 2026 - not renewed (announced Aug 2025) |
| Geographic focus | Ningbo, Hangzhou, Shaoxing, Taizhou, Lishui, Jiaxing, Zhoushan |
| Balance-sheet posture | Conservative debt-to-equity profile (company-stated) |
- Strategic priorities: strengthen neighborhood-store relevance, optimize inventory turnover, expand membership and loyalty economics.
- Risks & opportunities: competition from national e‑retailers vs. advantage from local penetration and community trust.
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