The Announcement Of The Resolution Of The Board Of Directors Is Going To "Recover" Wu Guang.

< p > recently, Wuhan's a href= "http://www.91se91.com/news/index_c.asp" > retail trade < /a > has attracted more and more attention. The recycling of Wuhan Plaza has become a hot topic in the industry.

The announcement of the resolution of the board of directors of the Wuhan Business Administration Limited will not continue.

The history of joint operation of Wuhan Plaza will be over.

This means that after 20 years of joint venture operation, the operation right of Wuhan Plaza is expected to "return" to the Hubei military business.

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< p > < strong > superior commercial environment < /strong > /p >

< p > Wuhan is located in the core of China, occupying the two major traffic coordinates of the Yangtze River and Beijing and Guangzhou. It has been thriving since ancient times, "nine provinces and thoroughfare".

Over the years, the business pattern of Wuhan has basically taken shape. Hankou, Hanyang and Wuchang each have several major business circles, especially Hankou, Jianghan Road and Jianghan Road.

The core area of Hankou mainly includes construction Avenue finance area, liberation Avenue business district and Wangjia Pier Central Business District.

Among them, Wangjia Pier Central Business District is one of the key projects of urban construction in Wuhan. It is one of the five major functional areas of Wuhan in 11th Five-Year.

Along the Liberation Road in the core area of Hankou is the traditional commercial district of Wuhan. The commercial atmosphere is mature and concentrated, and the industrial support is also dominated by commerce. Wuhan square is located here.

Wuhan Plaza is located on the east side of Hankou Air Road overpass, near the liberation Avenue, and three tall department stores stand next to each other.

The most prosperous business district in Wuhan is full of traffic and traffic.

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< p > Wuhan square was officially opened to the public in 1996. Wuhan Plaza is the core business of the Wu Shang Group (the Limited by Share Ltd of the Wu Shang Group, namely, the e Wu business). There were two main considerations in the operation of Wuhan square with the Hong Kong capital.

First, the gap between Hongkong and the mainland in the operation and management level of the department stores was relatively large at that time. The introduction of Hong Kong capital is conducive to improving the overall operation level of Wuhan Plaza. Two, the form of joint venture with Hong Kong capital is conducive to lowering the tax rate.

In December 29, 1993, Limited by Share Ltd and Hongkong Chuang Sheng group's subsidiary company, Hongkong International Management Co., Ltd. jointly established Wuhan Plaza Management Co., Ltd., and jointly operated Wuhan square.

The entire Wuhan square has an area of 80 thousand square meters. It is a luxury shopping center in Central China, which combines shopping, entertainment, catering, business, leisure and culture.

Wuhan Plaza Management Co., Ltd. registered capital of 21 million US dollars, of which: Wu Shang Group invested 10 million 710 thousand dollars, accounting for 51% of the total share capital, Hongkong International Management Co., Ltd. invested 10 million 290 thousand dollars, accounting for 49% of the total share capital.

The duration of the joint venture is 20 years, with a deadline of December 29, 2013.

Wuhan Square Management Co., Ltd. adopts the way of leasing to EWU, and the property right belongs to the listed company.

< a href= "http://www.91se91.com/news/index_c.asp" > e Wu Shang < /a > not only enjoys the annual investment income obtained from Wuhan Guang management company, but also gets part of the rent.

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In the past 20 years, the operation of Wuhan Plaza has been a great success. From the official website of Wu Shang Group, the data show that "Wuhan square has been the winner of the national retail champion since 1996, and has created a new record of retail trade in China".

At the same time, as the core asset of Wuhan merchants, the Plaza has become the most important source of profits for listed companies.

The latest financial statements show that as of the end of September 2013, the total assets of Wuhan Plaza amounted to 813 million 784 thousand and 400 yuan, accounting for 6.80% of total assets of the e Wu merchants, and the net assets of 379 million 779 thousand and 800 yuan, accounting for 6.99% of the company's net assets, according to the 51% equity ratio held by e Wu merchants. The total operating income of Wuhan square in 2 billion 97 million 545 thousand and 500 months was 2 billion 97 million 545 thousand and 500 yuan, accounting for 17.11% of the revenues of the company, and the net profit was 209 million 742 thousand and 700 yuan.

The proportion of Wuhan Plaza's contribution to net profit of e Wu business is much higher than that of sales revenue. To a certain extent, it reflects that Wuhan Plaza is a core asset with strong profitability.

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< p > < strong > paying attention to income leads to the return of operation power < /strong > < /p >

In the 20 years of < a href= "http://www.91se91.com/news/index_c.asp" > joint-venture /a > P, Wuhan square has created beautiful performance and witnessed the relentless wrestle between capital.

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< p > operation right return bill is not the first time for Wuhan Plaza. Intime department store group, a major shareholder of Limited by Share Ltd group, has proposed this proposal in 2006.

At that time, the fuse was the dispute of raising rent. In September 2006, Yintai department store, which had jumped to the second largest shareholder of EWU, proposed to convene the provisional shareholders' meeting of EWU, and adopted a "rent lifting bill" for Wuhan Square: the rental of 1-8 floors and podium of EWU, which was leased by Wu Guang company, rose from 65 million yuan to 217 million yuan.

If Wu Guang company does not carry out the proposed price increase, the company will reclaim its property and operate independently.

The dispute was finally ruled by the Wuhan intermediate people's court in 2008. The annual rent of Wuhan square was reduced from 217 million yuan to 150 million yuan in the original motion, and the mode of joint venture operation continued to end.

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Less than P, however, the concern about earnings caused by the controversy has not ended. Limited by the joint venture mode, the income gained from Wuhan square is still limited.

In 2012, for example, the net profit of Wuhan Square last year was 240 million yuan, but the proportion of 51% of the shares was only 120 million.

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< p > the right to reclaim Wuhan square is of great significance to the Wu merchants.

Although the growth rate of the macro-economy declined and the market competition intensified, the profit growth rate of Wuhan Guang management company declined in 2012, but it soon got a turning point.

In the first three quarters of 2013, the company achieved a revenue of 2 billion 98 million yuan and a profit of 210 million yuan.

As the end of the year is the peak season of consumption, the average quarterly earnings of the previous three quarters averaged 70 million yuan, which is a conservative estimate. This year, the profit of Wuhan Guang management company is expected to reach 280 million yuan. The growth rate is expected to reach 15.23% over the same period, and it will return to the fast track of growth.

For the recovery of the management rights of Wuhan square, the industry agreed that it was favorable for the listed companies.

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< p > "if we can successfully liquidate Wu Guang management company and recover the property from the listed company for self employment, assuming that the current growth rate of Wuhan Plaza is forecast to be 10%, and the net interest rate will refer to the level of 8.8% in 2012, it is estimated that the net profit of Wuhan Plaza will increase to 405 million yuan in 2014. Taking into account that the parent company will reduce the rental income of 165 million yuan, assuming that the net interest rate of this part of the leasing business is about 50%, the overall performance of 2014 will be increased by about 178 million yuan under the combined influence of two factors."

Changjiang Securities retail researcher analysis pointed out.

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< p > although Wuhan Plaza has adopted a joint venture operation mode, it has been developing for nearly 20 years, and its management team is basically controlled by Wu Shang Group.

In addition, with the unification of domestic and foreign tax rates, the preferential tax rate of the original joint venture mode has gradually weakened.

The necessity of joint venture between Wu Shang Group and Hong Kong side is weakening.

With the expiration of the 20 year joint venture operation right, it is reasonable for the company to recover the right to operate the Wuhan square.

With the deadline for joint venture operation approaching, the direction of Wuhan Plaza has become the focus of investors' attention.

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Another background related to < p > is that the reduction of the second largest shareholders of Yintai business and the withdrawal of several directors from the board of directors, and the gradual weakening of the control of intime business in Yintai department, and the dispute over the stock rights of the company are closely related to the capital market.

Against this background, the company began to fully increase its most advantageous department store industry.

E Wu announced that the joint venture deadline of the Wuhan Square Management Co., Ltd. which was jointly established by the company and Hongkong International Management Co., Ltd. will be expired in December 29, 2013. After the expiry of the company, the company will be liquidated without further storage.

However, this resolution still needs to be submitted to the shareholders' meeting for voting.

Once the board of directors resolution is voted by the shareholders' meeting, the operation right of Wuhan square will be completely recovered by the Hubei merchants, and the core assets of the Wuhan square will further increase the profit contribution of the Hubei merchants.

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