Joy City Enters Hangzhou To Expand Its Capability And Conceal Its Declining Performance

In February 4th, Yuecheng real estate announced that the controlling shareholder's COFCO acquisition and Run Tiancheng's full stake. The latter holds two adjacent lands located in Gongshu District, Hangzhou, and will develop into residential property and commercial projects under the "Joy City" brand. So far, the joy city officially entered Hangzhou.

　　 Joy City real estate Formerly known as COFCO, as a commercial real estate company of COFCO, the Joy City real estate has continuously integrated its resources, and now owns many commercial forms such as shopping centers, hotels, office buildings and so on. It has developed 18 property projects in Beijing, Shanghai, Sanya, Chengdu, Nanchang, Suzhou and Hongkong, especially the Joy City Shopping Center. It is understood that in January this year, officially renamed the Joy City real estate on the Hong Kong stock platform, the company's strategic expansion further accelerated.

Although the pace of expansion is continuing, the recent development of Joy City real estate Performance warning It is also striking. The company announced that by the expected value of the fair value of the investment property and the impact of the new projects, the total profits of the 2014 year will fall by about 45% to 50% compared with 2013.

Real estate responded to this. It said that in 2014, the company's new project W Hotel, WA Hotel and Yantai Joy City opened, and the start-up cost was included in the current cost, which to a certain extent affected profitability.

"The Xidan store and Chao Bei store of Yuecheng city are in good condition, and the performance of Shenyang store is also increasing after adjustment. The decline of Joy City performance is partly due to the drag on new projects. On the other hand, it is also affected by the general decline of commercial real estate nationwide. Wang Yongping, Secretary General of China commercial real estate alliance, said.

In the industry view, the current domestic Shopping Mall The business difficulty is constantly improving. "Before the operation of shopping centers is generally faced with two problems: location difficulty and investment difficulty. Now it has added new difficulties." Wang Yongping bluntly said.

The economic downturn has led to insufficient consumption power, disorderly competition in real businesses, and the O2O model has not yet been formed. Many problems are beset with the development of shopping centers. It is understood that at present, including Joy City, Wanda, Hongxing business and so on, to test water and assets in varying degrees.

In the eyes of the industry, the young and fashionable clear positioning of Joy City real estate helps them to play different cards in the market. At the same time, as the background of state-owned enterprises, the financial strength of listed companies is relatively strong. In the long run, the pace of the company is relatively stable.