(Yicai Global) Aug. 23 -- Yuyuan Tourist Mart Group, a Chinese retail conglomerate, will sell its CNY1.2 billion (USD175.2 million) stake in Taikang Insurance Group to realize nearly fourfold gains after reporting an almost 50 percent slump in net profit in the first half.

The major Chinese life insurer will buy back the 17.4 million shares for CNY66.58 (USD9.70) apiece in cash, the Shanghai-based department store operator said in a statement yesterday. Yuyuan Tourist Mart had bought the 0.6 percent stake in Taikang in October 2014.

The share sale should help Yuyuan Tourist Mart optimize its assets and financial structure to put more resources into its main businesses and development strategies, said the firm, controlled by famous Chinese mogul Guo Guangchang's Fosun International.

Founded in 1996, Taikang managed CNY2.7 trillion (USD394.2 billion) worth of assets as of Dec. 31, 2021. Its business covers the three sectors of insurance, asset management, and medical health. Its annual revenue exceeded CNY260 billion (USD38 billion) last year.

Yuyuan Tourist Mart's net profit slumped 47 percent to CNY754 million (USD110.1 million) in the first six months of this year from a year ago, the company said in its earnings report published the same day. Revenue was 4 percent down to CNY22 billion (USD3.2 billion) as the resurgence of Covid-19 outbreaks hurt business.

Yuyuan Tourist Mart's stock price [SHA: 600655] fell 0.9 percent to CNY8.09 (USD1.18) as of 2.11 p.m. The shares are down by nearly a fifth this year.

Editor: Emmi Laine, Xiao Yi