China Resources buys into HQ of struggling Hong Kong cosmetic retailer Bonjour Holdings via joint venture for US$114.7 million

Shareholders approved a deal to sell Bonjour Tower in Tsuen Wan to a joint venture owned by CR Capital and a unit of Bonjour Holdings

The move is the state-owned conglomerate’s third acquisition of assets in Hong Kong in recent months

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Customers stand in line to purchase protective masks at a Bonjour shop in Hong Kong’s Mong Kok district in February 2020. Photo: SCMP / Nora Tam

Published: 6:04pm, 8 Jul 2022

An arm of China Resources (Holdings) has bought into the headquarters of embattled local cosmetic retailer Bonjour Holdings through a joint venture (JV), the latest move by the state-owned enterprise (SOE) to pick up assets in Hong Kong.

Hong Kong-listed Bonjour Holdings said on Thursday that a majority of its shareholders have approved a deal to sell Bonjour Tower in Tsuen Wan to a JV owned by China Resources subsidiary CR Capital and a unit of Bonjour Holdings, for HK$900 million (US$114.7 million).

“The proceeds from the disposal represent a positive cash inflow, which would enhance the financial position and the liquidity of the group,” Chen Jianwei, chairman and chief executive director of Bonjour Holdings, said in the announcement. “The bank loan and the convertible bonds will be repaid, and hence the gearing ratio and finance cost of the group will decrease significantly.”

Bonjour Holdings booked a loss of HK$208 million in 2021, according to an unaudited annual report released in March, the sixth straight year of losses for the retailer. It has especially suffered over the last few years as first the 2019 protests and then the Covid-19 pandemic kept people away from social activities.

Bonjour Tower on Wang Wo Tsai Street in Tsuen Wan. Photo: Handout

China Resources is expected to raise its profile in Hong Kong following the recent promotion to general manager of Wang Cuijun, an executive with intricate knowledge of doing business in the city, according to analysts.

Units of China Resources have made other purchases in Hong Kong in recent months.

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