Lining's Development Of Sports Real Estate Is The Pretext Of &Nbsp; To Enter Commercial Real Estate Is Real.

According to reports, the extraordinary China Holding Company Limited announced that the company acquired losses in Shenyang as a result of the acquisition of the modern construction industry park limited.

On the other side of Lining's holding of extraordinary China's profit and loss handover, its flagship retail business is becoming increasingly flagging.

In July 7th, the Li Ning Co issued a profit warning of a 5% decline in sales, which plunged its share price by 3 and plunged its market value by nearly HK $3 billion 700 million in 3 days.

"Sports brand retail competition has been very fierce, making money is increasingly difficult, so Lining hopes to develop the real estate industry to complete the magnificent turn."

Sheng Fu capital President Huang Lichong said.

Name of sports real estate

In July 22nd, the announcement of the extraordinary China said that the initial review of the unaudited management accounts shows that the company expects net profit for the 6 months ended June 30, 2011, compared with the 6 month net loss in the same period last year.

"Net profit is mainly due to the acquisition of cheap proceeds from the acquisition of mega Industrial Park."

In September 2010, the extraordinary China announced that it would issue 1 billion new shares, and make a total price of 700 million yuan for Shenyang Liang Liang and Fu Fu to acquire all rights and interests of mega Industrial Park and trillion yuan real estate.

In March 2011, extraordinary China announced that its previous takeover plan was overturned and changed to 100 million yuan in cash to acquire all rights and interests of Shenyang trillion trillion Industrial Park.

"The new takeover agreement allows the company to buy the trillion yuan industrial park at a lower price."

In May of this year, extraordinary China took the price of 1 billion yuan in Shenyang. This is the second project in Shenyang about the concept of sports and theme community development.

"This reflects Lining's determination to make a big sports real estate, and sports real estate is a sunrise industry."

First, Li Jing, senior project manager of Shanghai securities investment bank, said.

But Huang Lichong did not think so. He said Lining's development of sports real estate was a pretence, and the development of commercial real estate was his real intention.

He said that sports real estate itself is not profitable, China has formed a sharp cut throat competition between sports retail brands, especially in the sports goods market of the provincial capital city, many pure sports real estate simply can not earn money, and must compete in the name of sports, which is a common trick of developers.

This judgment has also been recognized by some people in the industry.

Real estate analysts,

Why did Lining turn to sports real estate? Huang Li Chong said that there are more than 7000 retail outlets in mainland China for the five Chinese sportswear manufacturers listed in Hongkong.

These famous domestic sportswear brands often depreciate by 50% to 90%. Such a wide range and high discount shows the fierce competition in the industry.

In a research report published earlier in July, Credit Suisse said it is expected that Chinese sportswear manufacturers will integrate in order to survive, and a crisis may erupt in the second half of this year.

Data show that Li Ning Co expects net profit margins to fall to 6% to 7% from 12.9% in the same period last year as at the end of June 2011.

In fact, since last year, Li Ning Co's revenue has begun to show signs of decline.

In 2010, Li Ning Co earned 9 billion 479 million yuan, an increase of 13% over the same period last year, but this rate is lower than its average annual compound growth of more than 30% over the past 10 years.

Investment banks, including UBS, have thrown out the report of singing empty, rating Li Ning Co's investment rating from "neutral" to "selling".

Lining, who has been attacked by domestic and foreign competitors, is suffering from the setback of the brand remolding.

In this regard, Huang Lichong believes that Li Ning Co sales decline is irreversible.

"I think the current commercial real estate situation is not bad, but I am worried that when they get their business started, they will just encounter the severe winter of commercial real estate."

Huang Lichong said, "I have no objection to Lining's entry."