Mar. 18, 2023 – LatePost reported that Huo Yi, founder of Hema, would step down as CEO. He will transition to the role of Chief Honorary Advisor, continuing to offer guidance for the company. CFO Yan Xiaolei will assume the CEO position in addition to her current role.
Yan Xiaolei, aged 45, previously worked at Siemens China and KPMG. She joined Alibaba in 2016, serving as the finance lead for UC and Yintai Group, and later became CFO of Hema in 2018.
Founded in 2016, Hema was a flagship business for Alibaba to explore the new retail model. In 2019, Hema was upgraded to an independent business unit, with Huo Yi directly reporting to then Alibaba Group CEO Zhang Yong.
On Mar. 28, 2023, Alibaba announced its restructuring to a "1 6 N" model, indicating that businesses meeting certain criteria could potentially go public through independent financing.
On Apr. 18, 2023, during Alibaba's fourth quarter of the fiscal year 2023, the company disclosed that its board had approved the listing process for Hema, expecting completion within 6 to 12 months.
On Nov. 16, 2023, Alibaba's Q2 fiscal year 2024 report revealed that the initial public offering (IPO) plans for Hema have been put on hold. The company is evaluating the necessary market conditions and other factors to ensure successful project implementation and increased shareholder value.
Huo Yi mentioned in early 2023 that the primary Hema outlet, Hema Fresh, had achieved profitability. However, the overall business of Hema is yet to turn profitable.
According to LatePost, in 2022, Hema sought funding at a $1 billion valuation, but the valuation was repeatedly discounted without a successful transaction.
Recent news indicates that Hema is actively seeking new strategic investors, having approached multiple potential investors. The latest valuation is approximately $3.7 billion.