Tianhong Shopping Malls: Interactive Development With Shareholders "Department Stores + Commercial Real Estate"

Commentary:

1, China Aviation Technology Shenzhen Co., Ltd.

2, the main advantages of the company and its cooperation are: in essence, the department store operation of Tianhong and the commercial real estate business of Shenzhen airlines and Raymond international will achieve a win-win situation in the passenger traffic operation, complement each other and provide value for each other. The cooperative development with the other party can, to a certain extent, achieve the company's independent planning and design of the store property, making the property planning more in line with the requirements of the company's business operation, and breaking the bottleneck of store operation, such as unreasonable property planning and design.

3, in addition to collaborative development, the company also referred to commercial leasing and property purchases. We believe that property values and rents are long-term bullish for property located at the gold location of the core business circle or for the property with a larger potential and better location in its business circle. The purchase property can lock in the long-term cost and enjoy the benefits brought by the appreciation of the property, and because of its own property, the company is more daring to devote energy and resources to the property, and is more conducive to building an influential flagship store and expanding the brand influence.

But we firmly believe that the future development strategy of the company will continue to be a light asset development strategy based on lease.