Chinese mobile phone retail chain D.Phone will invest CNY23.53 million to acquire a 40% stake in Guangzhou Jinjiaxin Communications.

According to local media, D.Phone signed an equity transfer agreement with shareholders of Jinjiaxin. Under the agreement, D.Phone will purchase a 40% stake in Jinjiaxin for a consideration of CNY23.53 million.

Jinjiaxin is mainly engaged in the mobile phone sales business and its other businesses cover accessories, smart wearable devices, computers, and home appliance 3C products. At the same time, the company is also involved in value-added service, carrier business, and e-commerce sectors.

D.Phone is seeking O2O transformation within its services. The company is making huge investments in store upgrades to add experience areas and coffee areas. Since the second half of 2015, D.Phone required that all renovated old stores and newly decorated stores should have an experience area covering over 60% of store area and a coffee area covering over 30% of the store area. In addition, the company completed the building of 200 coffee areas through some of its stores.

D.Phone will establish a whopping 200,000 offline physical stores and kiosks over the next three years and its market share is expected to reach between 15% and 20%, covering various tiers of the market in China.