SHANGHAI – China’s Sinopec Corp is planning to jointly operate 300 of its convenience stores with Taiwan's Ruentex Group — a move that is likely to enhance the appeal of its massive fuel retail unit in which it is planning to offload a minority stake, according to a report from Reuters news.

The state-run oil giant has shortlisted 37 bidding groups, and is expected to choose a winning bidder by the end of the month.

Sinopec and Ruentex have already started jointly managing eight stores in Shanghai and daily revenue at the stores rose nearly 50% during a trial operation in August, the state-run China Securities Journal reported, citing an unidentified source from Sinopec.

The two firms will cooperate on merchandise procurement to cut costs, per an agreement earlier this year, and are also looking into potential e-commerce cooperation.

Sinopec, which has more than 30,000 gas stations, operates more than 23,000 convenience stores under the Easy Joy brand. Ruentex operates about 600 convenience stores under the C-Store brand in China. Sinopec will also team up with Fosun Pharma to launch a 24-hour service selling over-the-counter medicine and magazines soon, the paper said.

Unlike in Western markets, where non-fuel convenience stores and services like foodservice or car washes can account for more than half of a fuel station's profits, more than 99% of Sinopec's retail sales come from gasoline sales.