MINISO announces the acquisition of the remaining stake in a joint venture for its head office building project (form 6-K)
MINISO Group announces the acquisition of the remaining stake in a joint venture for its head office building project
GUANGZHOU, China, September 26, 2021 – MINISO Group Holding Limited (NYSE: MNSO) (“MINISO Group”, “MINISO” or the “Company”), a high-growth global retailer offering a variety of lifestyle-focused products on design, today announced that it has entered into a definitive agreement with YGF MC Limited (“YGF MC”), a company jointly controlled by the majority shareholders of the Company, Mr. Guofu Ye and Ms. Yunyun Yang, to acquire the stake remaining 80% in YGF Investment V Limited (“YGF Investment”), a joint venture between YGF ™ and the Company to establish the new head office of MINISO. After the closing of the proposed purchase, the Company will hold a 100% interest in YGF Investment and will begin to consolidate the financial results of YGF Investment in the financial statements of the Company. The transaction has been approved by the audit committee and the board of directors of the Company.
The total amount of this transaction is estimated to be around 700.4 million RMB, which is the lower of the actual amount of investment by YGF MC on August 31, 2021 and the appraised value of the holdings confirmed by a third-party appraisal firm, deducted from the estimated cumulative loss of YGF Investment that YGF MC would have to bear until the closing of this transaction. Closing of the transaction is subject to customary closing conditions and is expected to occur in the second quarter of the Company’s 2022 fiscal year.
In January 2021, YGF Investment’s PRC subsidiary acquired the land use right for a plot of land in Guangzhou for approximately RMB 1,780 million, which will be paid in two equal installments. As of the date of this press release, the first installment has been paid. This plot of land is located in the Pazhou Internet Innovation Zone, which is at the center of the future Guangzhou CBD area where many large new economy companies in China have chosen to set up their headquarters or regional headquarters. .
The total investment for the headquarters construction project, including the consideration for the acquisition of the land use right, is estimated at approximately RMB 2,885 million. The Company currently intends to support the subsequent capital expenditures of the project with its excess cash, future cash flows from operating activities and possible bank financing.
This new head office building, with a gross area of approximately 104,000 square meters, is expected to be completed by 2025. This investment positions the Company well for its future developments in terms of securing office space to accommodate the ‘future expansion of activities, saving long-term operating expenses and providing benefits in the potential appreciation of the property.
About MINISO Group Holding Limited
MINISO is a rapidly growing global value retailer offering a variety of design-driven lifestyle products. The Company serves consumers primarily through its extensive network of MINISO stores and promotes a relaxing, treasure-seeking and engaging shopping experience full of delicious surprises that appeal to all demographic groups. Aesthetic design, quality and affordability are at the heart of every product in MINISO’s extensive product portfolio, and the company continually and frequently deploys products with these qualities. Since opening its first store in China in 2013, the company has built its flagship brand “MINISO” as a globally recognized retail brand and established an extensive store network around the world. For more information, please visit http://ir.miniso.com/.
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MINISO Holding SA Group published this content on September 27, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on September 27, 2021 10:11:12 AM UTC.