On Monday evening (April 19), A-share listed Minmetals Development announced that it had recently received a notice from the General Administration of Market Supervision and Administration that the transaction between the company and Alibaba Group Holdings to establish a joint venture, Minmetals E-Commerce Limited, was suspected to constitute an operator concentration and was being investigated. The so-called concentration of operators refers to the merger of two or more enterprises with each other.
Minmetals Development said that the company will cooperate with the investigation as required by the filed investigation and fulfill its information disclosure obligations in accordance with the requirements of the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange, and would like to draw the attention of investors to the investment risks.
In May 2012, Minmetals Development established a wholly-owned subsidiary, Minmetals E-Commerce Co. In December 2019, Ali Capital, Ali Ventures and Beijing Haili Yunzui Investment Management Center (Limited Partnership) jointly established a joint venture with Minmetals Development and Ali Ventures.
In December 2019, Ali Ventures transferred its 44% equity interest in Minmetals E-Commerce to E-Dazhong (Beijing) Supply Chain Management Co.
It is reported that Minmetals Development is mainly engaged in three major types of business: resource trading, metal trading and supply chain services. 2020 annual report shows that the company achieved total annual operating revenue of 67.322 billion yuan, up 8.14% year-on-year; net profit attributable to shareholders of listed companies was 269 million, up 54.46% year-on-year.
Taiwan’s “Free Finance” reported on April 19 that the Chinese Communist Party has “backtracked” on Ma’s investment several years ago, and investigated a company in which Alibaba no longer has a stake, causing market speculation.
According to the report, it is clear that the CCP is comprehensively checking all the transactions of Alibaba Group, and there are signs of “backtracking” on transactions made several years ago, in order to clarify Ma’s intricate funds.
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