Alibaba made a decision to let the company’s share price take off. In the morning of October 19, Alibaba announced that it had agreed to acquire 70.94% of Jixin holdings through its subsidiary Taobao China for a cash value of HK $8.1 per share, totaling about HK $28 billion. Jixin holding holds 51% equity of Gaoxin retail, a Hong Kong listed company. < / P > < p > if the acquisition is successful, Alibaba and its related parties will become the controlling shareholder of Gaoxin retail with about 72% shares, and will also comprehensively record Gaoxin retail into its financial statements. Driven by the news, the stock price of Gaoxin retail jumped 11% this morning and then continued to rise. At one time, it rose nearly 30% and its market value was close to HK $100 billion. By the end of the day, Gaoxin retail sales rose to 19.17% to HK $9.45. < p > < p > judging from the stock price trend of Gaoxin retail this year, Alibaba’s participation in the stock market is undoubtedly a success. Before that, the stock price of Gaoxin retail has fallen by more than 40% since the second half of the year, and once fell to HK $7.57 at the beginning of October, falling to a new one-year low. < p > < p > according to the data, Gaoxin retail is mainly engaged in hypermarket and e-commerce platform business, and its two hypermarket brands are Auchan and RT Mart. As of June 30, there were 481 hypermarkets and 3 medium-sized supermarkets with a total floor area of 12.97 million square meters. The relationship between Alibaba and Gaoxin retail can be traced back to 2017. At that time, Alibaba invested about HK $22.4 billion through Taobao China, acquiring 36.16% of Gaoxin retail directly and indirectly. After that transaction, Ali became the second largest shareholder of Gaoxin retail, with a shareholding ratio of only 36.18% of Auchan retail. < / P > < p > at that time, after Alibaba took a stake in Gaoxin retail, there was constant speculation in the market about whether Alibaba would privatize Gaoxin retail. Gaoxin retail clearly disclosed in the latest announcement that Alibaba will maintain its listing status after the relevant offer is closed. < p > < p > according to Alibaba’s announcement, according to the Hong Kong company acquisition and merger code, after the completion of the share purchase, Taobao China will be required to make a mandatory and unconditional offer in cash for all the issued shares of Gaoxin at the offer price of HK $8.10 per share. < / P > < p > under the general offer, Taobao China may have to pay up to HK $17 billion to acquire Gaoxin shares held by other shareholders. This means that Alibaba’s acquisition of Gaoxin retail shares is the largest or will spend a total of HK $45 billion. < p > < p > with regard to the latest acquisition, Alibaba said that the original idea of cooperation with Gaoxin retail has become a reality today: the 484 stores of RT mart and Auchan supermarket under Gaoxin retail have been fully online, and have access to the inventory business shared by famo, taoxianda and tmall supermarket. All stores provide one hour delivery within 5 km of the store, and 180 stores support half day delivery within 20 km. < p > < p > according to the semi annual report of Gaoxin retail, as of June 30, the new retail solution provided by Alibaba has boosted the same store sales of stores by 5.7%, and the company’s net profit increased by 16.8% year on year, bringing nearly 50 million users to Gaoxin retail and nearly 13 million active users. < p > < p > in the latest announcement, Gaoxin retail said that Alibaba and the company believe that strengthening the alliance relationship between the two sides can enable the company’s business to continue to benefit from Alibaba’s electronic ecosystem, thus bringing more online traffic, better online and offline synchronous inventory management, and improving distribution capacity. The company’s stores will continue to be electronic and introduce new retail solutions. < p > < p > it is understood that the digital experience of Alibaba and Gaoxin retail in the new retail of supermarket stores has been opened to offline supermarkets such as Sanjiang shopping, Xinhua capital, Zhongbai, bufenglianhua and Greenland, helping more than 50 supermarket retail brands in China to promote digital transformation. < p > < p > in recent years, Alibaba has been accelerating its territory expansion through investment and M & A, among which core business and new retail fields are also important. < / P > < p > just at the beginning of this month, several media reported publicly that Alibaba and dufry, the world’s largest tax-free merchant, would form a joint venture in China, with Alibaba and dufry holding 51% and 49% shares respectively; meanwhile, Alibaba would take a strategic stake in dufry and plan to hold no more than 9.99% of dufry’s shares. The main purpose of this cooperation is to jointly explore and invest in China’s tourism retail industry and accelerate dufry’s digital transformation. < p > < p > If Alibaba and dufry work together successfully, it will undoubtedly bring great changes to the competition pattern of the domestic tax-free market. At present, Alibaba has no positive announcement response to the above news, but the layout of the company in the new retail field has never stopped, or we can see a corner from the figure below. < p > < p > Guojin Securities believes that for Ali, which has already occupied a dominant position in the online retail market and has established a sound infrastructure, it undoubtedly hopes to find a suitable angle to cut into the line and open its ceiling in the domestic retail market from a long-term perspective, and new retail will emerge as the times require. < p > < p > Guojin Securities said that in the face of decentralized offline retail, Alibaba, on the one hand, incubated a new business model HEMA Xiansheng through consumer insight and technology; on the other hand, it also tried to cooperate with traditional retail giants such as Suning e-buy, RT mart and even home to reconstruct its business and improve sales through digital operation and increasing online and offline consumption scenarios Sales efficiency. Moreover, Alibaba’s continuous growth of free cash flow also provides strong support for the company’s continued layout and investment in the future. Global Tech