Southern China City Intends To Build A Wholesale Shopping Mall In The Mainland, Spending 16 Billion Yuan Next Year.

8 comprehensive projects have been completed.

The business center sets up wholesalers from different industries.

Most of these integrated logistics and business centers are located near the provincial capitals of China, including wholesale stores, fast food restaurants, hotels, warehouses, bank branches, and even houses.

The company also owns and operates a consumer oriented otter store in Shenzhen's flagship center.

Feng Xinghang, chief financial officer of Southern China City, said that Southern China city plans to buy land early next year and build ninth large trade logistics centers in Guangzhou.

He said the company's 2015 fiscal year (end of next March).

The budget is about HK $16 billion (US $2 billion 60 million), higher than HK $10 billion in fiscal 2014.

The expenditure plan for the current fiscal year includes HK $12 billion in construction and HK $4 billion in real estate acquisition.

With the help of Tencent, Southern China City, which was founded in 2002, is pferring tenants to online.

Earlier this year, Tencent acquired a 11.55% stake in Hua Nan City.

The two companies are working hand in hand to help wholesalers sell products online through e-commerce platforms.

Feng Xinghang said that Southern China city also welcomes equity partners like Tencent.

If other partners can bring value, good for the company and good for small and medium enterprises, then they may consider it.

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The traditional department store, which is facing the "retail revolution", has accelerated the pace of integration.

Beijing Cui Wei building Limited by Share Ltd issued a notice recently that the plan to buy assets and raise matching funds to the state-owned capital management and management center of Haidian District city of Beijing has been approved by the SFC. This also means that two traditional department stores, which belong to Haidian District's state-owned capital management and Management Center, will be purchased by Cui Wei.

Notice announced that Cui Wei will purchase 100% of the shares of the contemporary mall and the Gan Jia Kou building, with a paction price of 2 billion 468 million 315 thousand and 600 yuan.

Although the Commission's approval has just been received, the purchase price of nearly 2 billion 500 million yuan has been evaluated as early as last year.

At that time, the subscription price of Cui Wei shares was as high as 13.68 yuan per share, and the purchase price was 76.74% above the base price, creating a premium record for many years in the A share market.

After the completion of the paction, Cui Wei will have 9 stores, and the sales market ranking in Beijing department stores will further increase. The market share will rise from about 10% to about 15%.

Regarding the purpose of the acquisition, Cui Wei said that the location of the stores in the contemporary shopping mall and the Gan Jia Kou building is superior, and it will complement each other in the geographical location of the existing stores, so as to enhance the profitability of the listed companies and solve the potential competition problems.

However, the continuous downturn of traditional department stores has made many people worried about whether they can realize their wishes.

In the first half of this year, the number of retail sales of major retail enterprises in China dropped by 10.9% compared with the same period last year, while the retail sales of Beijing's department stores increased by 8.57% year-on-year.

At the same time, many stores like Hua Tang and other department stores have repeatedly heard the news of store closing.

The earnings of these two stores are not ideal.

Data show that the main business revenue of Shangcheng mall last year reached 1 billion 437 million yuan, a decrease of 10.4% compared to 2012, while the main business income of Gan Jia Kou building in 2012 was 658 million yuan, down 2.4% compared to 2011.

Even in the case of Cui Wei, the revenue of 6 stores last year has dropped from 4 billion 950 million yuan in 2012 to 4 billion 690 million yuan, and net profit has decreased by nearly 15 million yuan.

Cui Wei shares responsible person said that due to changes in the market demand for consumption, so that department stores, especially high-end positioning department store business enterprises to resist macroeconomic fluctuations in the ability to reduce.

At the same time, large scale department stores and electricity suppliers in the same industry also bring enormous competition pressure.