Tianhong Hao Shares 7 Hundred Million Shopping Centers In The Villa Area Of Zhongshan, 60 Thousand Ping For 20 Years.

Tianhong shares opened shop again!


On the night of November 20th, the Limited by Share Ltd of Tianhong Mall (hereinafter referred to as "Tianhong shares") announced that according to the company's strategic development plan and the need for sustained growth, the company signed a housing lease contract with Zhuhai Hengqin New Area Shen run commerce and Trade Development Co., Ltd. and Zhongshan Reng Li Feng building materials Co., Ltd., and lease some of the properties of Guangdong Bay Zhongshan Bay project, which is used to open shopping centers. The lease area of the project is about 61 thousand and 300 square meters, and the lease term is 20 years. The total transaction amount (including rent, business service charge and parking lot management fee) is about 731 million 720 thousand yuan. In addition, the company has invested about 78 million 560 thousand yuan for the decoration and equipment purchase of the project.


The announcement shows that the property of Tianhong share leasing is located in the 34 floor of Yuelai South Road, Zhongshan, Guangdong, China, with a floor space of 61 thousand and 300 square meters from the ground floor to the six floor.


According to the reporter, China and Australia riverside Bay is the first large villa project developed by the Sino Australian real estate in the urban area. It belongs to the "three old" transformation key project. Its core value can be summed up in four words: "city and villa". The central section of the main city is self-evident, with 172-230 square meters of the most livable villa design, two parking spaces, a full basement donation, a 6 meter hollow living room, a 5 meter high storey master bedroom, and a complete suite of sloping roof design, leading the new villas of urban villas. The garden design is designed by ALD, a famous Canadian design company, with 40% greening rates, 82-328 square meters of garden gifts, balconies and gardens. Every villa is a new world. Another high quality foreign house, also enjoy reverence.


Tianhong shares said that the purpose of signing the contract is to set up shopping centers for leasing property, which is conducive to expanding chain store network, expanding influence and upgrading the industry status.


According to the insiders, Tianhong shares locate the urban middle class families, department stores, shopping centers and supermarkets with flexible location and flexible location. At the same time, the company actively responds to the trend of consumption upgrading in low - level cities, and layout the cities from one to four lines in depth, and continuously promotes the sinking of stores. In addition, due to the maturity of the project management mode of the department stores and shopping centers and the obvious brand effect, the company began to develop the mode of light asset expansion, such as joining and management output, and constantly increased the profits of the company.


China Galaxy Securities analyst Li Ang previously thought that Tianhong shares continued to adjust the store format and increase the area of experience format, which increased by 5% compared with the year-on-year profit growth of the stores, representing a decline of 14.57 percentage points over the previous year, of which 54.38% contributed a 5.18% decline in the total profit of the department stores, while the 38.21% (38.21%) supermarket profits increased by 13.44%. Two were still the main source of revenue for the company; the shopping center format (accounting for 6.52% of the same store) and the convenience store format (accounting for 0.89% of the same store) although the volume was smaller, the total profit increased by 59.19%/94.73%, and maintained a high growth rate. From the same store sales data, we can see that the company's choice of consumer channels and experiential shopping centres profit is good, while department stores are in a sluggish state, and the future needs to be upgraded.


According to the financial report, in the first three quarters of 2019, Tianhong shares realized a net profit of 652 million yuan, a decrease of 21 million yuan compared with the same period last year, down 3.15% from the same period last year. In the first three quarters of this year, the company paid a net profit of 561 million yuan, a decrease of 29 million yuan compared with the same period last year, a decrease of 4.86% over the same period last year. In the first three quarters of this year, the company's non recurring gains and losses totaled 91 million 117 thousand and 300 yuan, of which the profit or loss of entrust others to invest or manage assets was 85 million 876 thousand and 700 yuan, accounting for 94.25% of the non recurring gains and losses.


Li Hui, a Northeast Securities analyst, said that in the 40 years of China's reform and opening up, the first tier cities have become the center of China's urbanization and economic development. The improvement of infrastructure in these cities has provided support for industrial development, which has given rise to a large number of employment opportunities, and the income of urban residents has increased rapidly, thus promoting the growth of the consumer market. With the continuous progress of China's urbanization process, the population of low level cities has been rapidly concentrated, and the level of industrialization has improved rapidly, and the income level of residents has been approaching to the first tier cities. Due to the large population of low line cities and the promotion of consumption upgrading from the first tier cities to the low level cities, the consumption growth of low level cities is catching up with the first tier cities, which has become a new driving force for China's consumption growth.


Shopping centers, compared with traditional department stores, have more focus on consumer demand, consumption changes and consumption habits in terms of customer orientation, functional layout, space creation and consumption experience, better reflecting the status of consumer centers, showing a clear demand orientation and flow oriented orientation, better complying with the development direction of quality, family and lifestyle of consumers, and conforming to the trend that consumer centers shift from functional, physical consumption to service oriented, experiential, socialized and entertaining.


Li Hui said that since the first shopping center of Tianhong shares was fully opened in October 26, 2013, Tianhong shares began to expand the shopping center business in an all-round way. After that, Tianhong shares continued to experience retail development represented by shopping centers, with theme editors upgrading online and offline. Since 2017, the company's new stores are mainly shopping centers. As of the first half of 2019, there are 15 shopping centers in the rainbow group (4 outlets). Future Ltd's new stores will also be dominated by shopping centers.


In Li Hui's view, commercial real estate developers often lack experience in the operation of retail entities due to their huge advantages in property resources and capital. Tianhong shares has rich experience in physical retail operation. The way of light assets cooperation is conducive to deep cooperation between Tianhong shares and commercial real estate developers, relieving developers' pressure and achieving win-win results, and effectively alleviating company's financial pressure and reducing the risk of expansion. In the future, Tianhong shares will continue to carry out more in-depth and diversified cooperation with domestic leading property developers, flexibly combining shopping centers, department stores, supermarkets and convenience stores, and make comprehensive use of various cooperation modes such as cooperative development, leasing, joining, management output and joint operation, so as to provide more diversified solutions for developers.