New World Dilemma: Zhou Dafu'S Delay In Opening Stores Is Insufficient.

In the most recent time, the new world is one.

The Empire encountered new problems and the department stores were not enough. Zhou Dafu's stores would delay opening or even close some stores.

The new world empire created by Zheng Yutong is facing an unprecedented test.

In the mainland's real estate business level, the new world is playing a "break away from". At the end of 2015, it sold nine projects to Hengda Real Estate and a total of 33 billion 900 million yuan assets. In 2016, it started the new world real estate privatization.

Zhou Dafu, who once cut off the market, is now making clear the high speed development plan. He proposes to close the 5~6 store in Hongkong by March of this year, and the new store in the mainland will also be reduced from the originally planned 150~160 family to 50~60.

Despite the fact that Zheng Jiachun, chairman of the new world development group, denied rumors of mainland divestment, the recent unsatisfactory performance of the new world China, the high cost of financing and the vagaries of the mainland real estate market are a bit of a sign that the Zheng family has shaken its business in the mainland.

Property swings

In January 4th, new world development and new world China stopped trading. After a flash of lightning, the privatization plan of the new world was unveiled.

This time, the privatization plan of the new world has been pformed into a comprehensive takeover from the agreement acquisition two years ago. The Zheng family's strong attitude towards privatization is obvious.

Referring to the reasons for privatization, the reasons given by the new world China are mainly due to low share circulation and limited financing capacity.

In the new world, China believes that there will be greater demand for capital in the future, but the share circulation of the company is low. The paction price has a large discount to the net asset value per share in the new world, and the ability of the platform to raise funds through the open stock market is limited.

The announcement said that if the new world China received no less than 90% of the proposed shares in 4 months, and no less than 90% of the new world China shares without interest were effectively accepted, the privatization of the new world would be successful and the market would be closed from the HKEx.

From the new world China's own development in recent years, on the one hand, its performance fluctuated, and its revenue in the 2004 fiscal year was HK $3 billion 890 million, which dropped to HK $3 billion 379 million after a year.

In the 2008 fiscal year, revenue rose to HK $6 billion 884 million and fell back to HK $4 billion 686 million a year later.

In the 2011 fiscal year, revenue rose to HK $15 billion 622 million and fell to HK $13 billion 676 million in one year.

The new world China 2014/2015 fiscal year shows that property sales accounted for HK $2 billion 936 million, compared with 41.3% in the 2014 fiscal year.

The total sales volume is about 13 billion 68 million yuan and sales volume is 855 thousand square meters, down 39.5% from the same period last year.

As a group of developers who have entered the mainland market earlier, the new world China has not done much in the mainland market. In recent five years, there has been little success.

For the privatization of the new world in China, the industry generally interpreted it as the last gamble of the Zheng family's mainland market: Winning away from the numerous crises in the mainland's real estate market, losing completely the previous advantage and losing the appreciation of the subsequent market.

Shortage of department stores

In the new world department store of the new world, the newly created, new world, the three largest listing of Chinese real estate, the new world department store, which is mainly based on department stores, seems insignificant.

Compared with the real estate market is still full of variables, the mainland's retail market is in the doldrums, and the traditional retail crisis with department stores is especially strong.

The new world department store, once the wind vane of the mainland department store, has been on the low side since its listing. Previously, the customs of Ningbo and Shenyang stores even pushed the new world department store to the edge of losses.

In the fiscal year 2014~2015, the annual profits of new world department stores fell 86.6% to HK $69 million 741 thousand, and core annual profits (excluding other net losses, fair value changes in investment properties and related income taxes and other non core items) decreased by about 52.6% to HK $264 million.

Since its listing in 2007, the new world department store has maintained a positive growth.

It is not only the sharp shrinkage of profits, but also the slow expansion of new world department stores.

Statistics show that in 2007~2015, the number of new world department stores expanded from 31 to 41 department stores and 2 shopping centers.

In the eight year period, the number of new stores was 12, with an average annual increase of 1.5.

In fact, in the whole

In the development and Zhou Dafu enterprise overall plate, the Department Store plate energy pouring is also inferior to the past.

According to a person familiar with the new world department store, the new world department store has greater differences in the initial department store changes, some of which stick to the existing interests, the thinking or the department store; the other hopes to increase the experience and add the fresh elements.

The disunity of internal thinking also made the new world department store slow down in the initial stage of change, although since last year, some stores have increased the proportion of catering and experience formats and adopted brand agents by acquiring company, but the overall style of department stores is still conservative.

At present, the main retail business section is Zheng Yutong's grandson Zheng Zhigang. As the third generation leader, he created another shopping center brand K11, opening the expansion of the mainland market.

Zheng Zhigang, who has a profound artistic background, is much more enthusiastic about K11 than the new world department store.

In June 2009, the New World Department announced that its investment will not exceed 100 million yuan, and it will innovate the image of 33 new world stores owned or operated.

Subsequently, Zheng Zhigang began to accelerate the pace of K11 expansion in the mainland market, and expects to invest $1 billion over the next 7~10 years.

However, the expected expansion rate of K11 is not as high as expected. The Shenyang K11, which is scheduled to open at the end of 2015, has been postponed until the end of the year or early 2017.

Zhou Dafu slow down shop

Zhou Dafu is the most valuable asset owned by the Zheng Yutong family, but his performance has also been affected by the downturn in the market.

In February 17th, Zhou Dafu announced that sales growth in the same store during the Chinese new year fell by 28%, while the same store sales and retail sales decreased by 29%.

Zhou Dafu said the poor performance was due to the decrease in the number of mainland visitors and the continued weakness in the retail market in both places.

The mainland retail value and same store sales growth fell by 30% and 31%, mainly due to the increase in the number of outbound tourists, leading to holiday consumption outflows and the weakness of luxury consumption due to the economic slowdown and recent stock market volatility.

Unfortunately, management expects the retail environment in the fourth quarter to continue to be challenging and sales performance will be weaker than in the third quarter.

This also stopped Zhou Dafu from running fast. Chairman Zheng Jiachun said that the group will evaluate every branch this year, and it is expected that some sub shops will be cut down, and the staff will be reduced according to the situation. "Zheng Jiachun," he said.

Zhou Dafu also made clear earlier that he will close the 5~6 store in Hongkong by March of this year, and the new store in the mainland will also be reduced from the original 150~160 family to 50~60.

At the same time, influenced by the change of consumer habits and purchasing channels, Zhou Dafu also needs to adjust strategies for the market environment and consumer preferences, and optimize and integrate channels.

In the first half of last year, Zhou Dafu closed 115 retail outlets, accounting for 5% of the total retail outlets.

However,

The first phase of the Qianhai Shopping Centre jointly invested with the new world development was opened late last year. Zheng Jiachun said that the results were good. It is expected that the second phase of the end of April will be larger and attract more people to shop.