Tianhong Shares 1 Billion 602 Million Renewal Of Nanchang Zhongshan Rainbow Project 20 Years, Renovation And Renovation Of Nearly 45 Million!

Tianhong shopping center Limited by Share Ltd (hereinafter referred to as "Tianhong shares") announced in the evening of June 3rd that, in view of the expiration of the lease term of the property in Zhongshan, Nanchang, Jiangxi, the Fourth Board of directors agreed that its subsidiary Nanchang Tianhong commercial field Co., Ltd. will continue to lease the property of Nanchang City, Jiangxi Province, and to operate Nanchang Zhongshan Tianhong.

The renewal project area is about 54379 square meters, the lease term is 20 years (from April 1, 2022 to March 31, 2042), the total paction amount is about 1 billion 602 million yuan (including rent and so on).

In addition, after the renewal of the company, the company invested about 49 million 840 thousand yuan in the renovation and renovation of Nanchang Zhongshan Tianhong, and the funds came from the company's own funds.

Tianhong shares said that the renewal items were used by the company to continue to operate the Tianhong mall, which helps the company occupy the resources of high-quality online stores, and maintain and stabilize the market position of the company in Jiangxi province.

Insiders said that the core competitiveness of Tianhong shares in the retail operation capacity and digitalization has made the growth rate of the company's internal growth faster than that of the same industry. It has ushered in the golden era of rapid extension and development in the wave of shopping center's sinking to the low level city.

According to the financial report, in the first quarter of 2019, the shares of Tianhong realized 5 billion 178 million yuan, down 0.82% compared with the same period last year. The net profit attributable to shareholders of listed companies was 314 million yuan, an increase of 5.25% compared with the same period last year. The net profit attributable to shareholders of listed companies after deducting non recurring gains and losses was 293 million yuan, an increase of 7.41% over the same period last year, and the basic earnings per share were 0.2613 yuan.

By the end of the reporting period, Tianhong shares had entered 25 cities in 8 provinces / cities, including Guangdong, Jiangxi, Hunan, Fujian, Jiangsu, Zhejiang, Beijing and Sichuan. There were 13 stores in the shopping center (including 1 affiliate and 1 management outlets), 68 stores in the department stores (3 in addition to the alliance), 81 stores in the supermarket stores (5), and 157 stores in convenience stores, covering an area of more than 3 million square meters.

Mary Wu, an analyst at Soochow securities, believes that as the earliest development business of Tianhong shares, Tianhong is making efforts to create innovation in department stores through lifestyle editor.

By the end of 18 years, Tianhong has 68 general merchandise stores. Among them, there are 65 stores in Tianhong Department store, which are located in middle-class families, and 18 in 65 stores nationwide.

Compared with the national large scale real estate developers, the "Rainbow" shares of "retailers", which rely on many years of retail experience, flexible organizational structure and adequate incentive mechanism, have gradually formed the hardware conditions in different regions and according to different formats, and create the ability to adapt to the special characteristics of local consumers.

In addition to the traditional department store format, the company gradually has the operation capacity of various formats such as supermarkets, shopping centers, convenience stores and so on. As of 2018, the company already has 68 comprehensive department stores, 13 shopping centers and 81 supermarkets.

In Mali's view, the resources and experience of department store operation can make the shopping mall of Tianhong share maintain its experience while maintaining product richness to enhance its efficiency.

In the 70 thousand flat area, the general shopping center may probably introduce 200 brands, but rainbow can introduce more than 300 brands, thanks to Tianhong's own department store operation experience for many years.

For example, Tianhong shares will seamlessly introduce their own department stores in shopping centers, so that the flow of goods in department stores and shopping centers will flow in two directions.

The diversion of shopping centres and the superimposition of the company's management capabilities have strengthened the sales of related products in department stores such as department stores, shoes and hats and cosmetics, and promoted the attractiveness and overall sales of shopping centres to consumers.

At the same time, Tianhong shares basically closed the previous store adjustment in 2016. In 2018, Tianhong shares began a new round of shopping center expansion with the positioning of the second tier city community life center and the three or four line city center.

Ma Li analysis, benefiting from the company's strong retail capability, Tianhong shares have relatively low requirements on the property market maturity, which effectively saves expansion costs and expansion time.

Because of its strong retailing ability, the company has the ability to successfully operate the immature shopping center in the business circle, which enables it to expand its stores at a faster and lower cost.

According to the current reserve project, the average initial decoration equipment (80 million) plus the first year rent of the company project, the initial investment of a single project is around 130 million, and capital expenditure is basically controllable.

At the same time, relatively low store opening costs and strong retail capabilities enable the shopping center to control the first year's losses in ten million and make the new shopping center profitable in 1.5-2.

At the same time, for the strong adaptability of the property, Tianhong shares began to accelerate the pace of expansion of new projects in the context of the expansion of the whole shopping center to the low level cities in 2018.

Tianhong shares added 9 direct shopping center project reserves and 2 direct department stores in 2018. It is expected that every year, rainbow can expand its stores with double digit large stores (department stores and shopping centers).

XinDa Securities researcher Li Dan also said that from 2019 1-2 months, Tianhong shares continued the 2018 consumer pressure situation, resulting in the first quarter of 2019, Hong Kong shares overall comparable shop revenue fell 2.75% year-on-year, gross profit increased 3.52% year-on-year, total profit increased 7.62% over the same period last year.

According to the separate category, the department stores could decline more than the stores, the revenue decreased by 10.11% compared with the same period last year, and the total profit fell by 5.65% compared with the same period last year. The supermarket business maintained a relatively high growth rate under the favorable circumstances of CPI, the revenue grew by 10.63% year-on-year, and the total profit increased by 29.31% compared with the same period last year. As a concentrated development format of the company in recent years, the shopping center has maintained a better trend than the store data. The revenue grew 1.59% year on year, and the total profit increased 78.10% over the same period last year.

In the first quarter of 2019, Tianhong shares did not open new stores (department stores, shopping centers), and opened 5 new convenience stores. In addition, Shenzhen Merlin Tianhong store, which was due to expire at the end of 2018, was converted into self operated business in 2019. As of the first quarter of 2019, the total shares of Tianhong shares in 25 cities in 8 provinces and cities jointly operated 13 shopping centers (including 1 members of the franchise, 1 management outlets), 68 stores (including 3 stores), supermarket stores (81), and convenience stores.

In terms of new signing stores, Tianhong shares signed 2 community life center projects and 5 independent supermarket projects.

Public information shows that the major shareholders of Tianhong shares are central enterprises and Hong Kong investors.

Its largest shareholder is China Aviation Technology Shenzhen limited, whose actual control is the SASAC of the State Council.

As the only central enterprise in the A share market department, the background of shareholders is strong.

At the same time, Huang Junkang, the second largest shareholder of the company, was a businessman in Hongkong and a founder of Huang Meng, who joined the company in 84 years. He has rich experience in China's business environment and real estate and retailing industry.