Parkson Will Sell All The Shares And Related Shareholders' Claims Of The Wholly Owned Affiliated Companies In China.

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The group announced that it would sell all the shares and related shareholders' claims of the wholly owned Affiliated Companies in China.

The total share price includes a fixed amount of 1 billion 670 million yuan and other additional amounts, and the net proceeds from the sale are about 1 billion 900 million yuan.

According to the announcement, Parkson sells Beijing Hua Desheng Property Management Co., Ltd., an indirect wholly-owned Affiliated Companies for Baisheng group. Its property is Sun Palace Baisheng, located in Chaoyang District, Beijing, including 7 floors on the ground and 3 floors on the ground floor.

As of July 31, 2016, the company's unaudited net book value was 1 billion 32 million yuan, and no official valuation has yet been made. The property deliveries will be completed by the end of this year.

The buyer is Shenzhen Qianhai Blue Investment Center and Shanghai Changkun Cci Capital Ltd. The shares are 99.99999999% and 0.00000001% respectively, both of which belong to the capital Changhe capital Cci Capital Ltd, which focuses on the acquisition and investment of quality office buildings, commercial retail and residential projects in the core areas of the second tier cities in China.

Parkson said in its announcement that the sale of Parksun Sun Palace store will create value for the company. Baisheng group can no longer invest resources in the continuous loss of business, so that resources can be applied to other businesses in Parkson group.

In addition, the proceeds from the sale of property will also improve the financial situation of Parkson group and provide resources for the group.

Brand and catering brand new business.

Data show that the sun palace Parkson opened in August 2010, during the incubation period to catch up with the overall downturn in department stores, shopping malls operating conditions have been bleak.

In 2013, at the time, the first shopping mall built by Hongxing Mei Kai Long's red star business was opened by Aegean Sea Shopping Center (MALL) at the location of 20 meters away from the Parksun Sun Palace store. The concept of a huge amount of food and beverage matching was launched. The outside world once thought its attracting passenger flow would be a turning point for the sun palace Parkson.

However, the situation has not improved. In 2015, some businesses in Baisheng palace of the sun palace were even more depressed.

Parkson, who entered the Chinese market in 1994, has been the representative and leader of China's high-end department stores. But in the past three years, the performance of the department stores has been declining in the past 2013-2015 years. In the 2013-2015 years, the net profit growth of Baisheng group was -58.4%, -34% and -174% respectively, especially in 2015.

In the first half of this year, no improvement has been made. According to the financial report, Parkson group's revenue in the first half of this year was 8 billion 495 million yuan, down 12% compared to the same period last year, and net profit loss was 124 million yuan, down 85.65% compared with the same period last year.

In the case of a sharp decline in revenues and net profits, closing stores is the most direct way to stop losses.

This year, Parkson has closed 3 shops in Xi'an East Street store, Chongqing Daping store and Chongqing Vientiane.

In the early 2012-2015 years, Parkson closed 10 stores in Shanghai, Guiyang, Shijiazhuang, Ji'nan, Tianjin and other places, and by the end of 2015 there were 58 stores.

Not only is Parkson, but the entire department store industry has not been out of the doldrums.