Zhongmin Baihui, through its wholly-owned subsidiary, Zhongmin Baihui (China), has signed an agreement to form a joint venture (JV) company with Mingfa Group Anhui Jinzhai City Development on April 30.

According to a statement put out by Zhongmin Baihui on June 9, it will have a 20% stake in the new JV, while Mingfa Group will own 80% of the new JV company.

The new JV company will have a registered share capital of RMB3 million ($620,473).

It will market, operate and manage 53,633 sqm of retail space in Jinzhai Mingfa City Square in Jinzhai County, Hefei for a period of 20 years from May 1.

The transaction will be funded from Zhongmin Baihui’s internal resources and is not expected to have any material financial effect on the group for the financial year ending Dec 31.

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Shares in Zhongmin Baihui closed flat at 68.5 cents on June 9.