Sanjiang Shopping Club Co.,Ltd. (601116) faces another round of stake reduction by Alibaba.

On November 5, Sanjiang Shopping announced receiving a "Share Reduction Plan Notice" from its second-largest shareholder, Hangzhou Alibaba Zeta Information Technology Co., Ltd. (referred to as "Alibaba Zeta").

Alibaba Zeta plans to reduce its holdings in the company by up to 16.43 million shares (not exceeding 3% of total shares) through centralized bidding and block trades, citing its own commercial arrangements.

Currently, Alibaba Zeta holds 164 million unrestricted tradable shares in Sanjiang Shopping, representing 30% of total shares. It remains a major shareholder with over 5% ownership.

Corporate records show Alibaba Zeta is 98.31% owned by Taobao (China) Software Co., Ltd. and 1.69% by Alibaba (China) Network Technology Co., Ltd.

Alibaba Zeta has been invested in Sanjiang Shopping for nine years. The partnership began on November 18, 2016, when Sanjiang's controlling shareholder Shanghai He'an Investment Management Co., Ltd. transferred 9.33% shares to Alibaba Zeta.

The companies also signed a cooperation framework agreement to integrate supply chains and leverage Alibaba's e-commerce resources, including Taobao Grocery and Taobao Convenience Store businesses, while upgrading membership and payment systems.

Alibaba Zeta increased its stake to 32% in 2018 through participation in Sanjiang's private share placement.

This marks the second reduction plan disclosed this year, following a similar 3% reduction plan announced in April. Between August 6-11, Alibaba Zeta sold 5.4766 million shares via centralized bidding and 5.477 million shares via block trades, totaling 2% of Sanjiang's shares, before terminating the April reduction plan early.

Separately, Sanjiang Shopping disclosed on August 6 that its fresh food business cooperation agreement with Alibaba-affiliated Hema (China) Co., Ltd. will expire on March 31, 2026, without renewal.

The Hema partnership, established in 2016 for innovative store operations, was extended multiple times before Hema notified non-renewal in August 2024 due to strategic adjustments.

Sanjiang's wholly-owned subsidiary Zhejiang Zhehai Huadi Network Technology Co., Ltd., which operates Hema stores, reported revenues of 429 million yuan (2022), 447 million yuan (2023), and 550 million yuan (2024), with net profits of 7.2 million yuan, 11.26 million yuan, and 18.33 million yuan respectively. Q1 2025 figures show 160 million yuan revenue and 8.26 million yuan net profit.