Zhengzhou Haining Leather City Project Settled To Invest 750 Million Yuan

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The announcement was made on the night of < p > < a href= "http://sjfzxm.com/news/index_s.asp > > Haining city" /a "> 25 evening. The company settled with the people's Government of Zhengzhou Zhongmu city of Henan Province on" a href= "http://sjfzxm.com/news/index_s.asp" Zhengzhou Haining leather city "/a project, and reached an investment agreement in Zhengzhou City, Henan Province in December 25, 2013, with a total investment of about 750 million yuan.

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< p > the company said that the development of Henan's < a href= "http://sjfzxm.com/news/index_s.asp > > Xinxiang Haining Leather City < /a > has been running for three years, but the further development has been restricted by the radiation ability of the city, the consumption habits of the Central Plains customers and the traffic and parking pressure brought by the city center location.

As the capital city of Zhengzhou Province, Henan is the economic center and pportation center of the Central Plains region. The location of this agreement is "Green Park", which is located near the Zheng Dong New District of Zhengzhou. It is located in the central location of the "Zheng Bian integration" plan in Henan Province, with convenient pportation and obvious location advantages. The "Fang Ti happy world" and the "Green Expo" project already opened in the "Green Expo Industrial Park" are expected to share and complement each other with the Haining leather city. The site selection has good conditions for the development and construction of "Haining leather city".

After the opening of Haining Leather City in Zhengzhou, the company plans to close all or part of Xinxiang Haining leather city.

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< p > according to the investment agreement, Zhengzhou Haining < a href= "http://sjfzxm.com/news/index_s.asp" > Leather City < /a > is planned to be put into operation in autumn and winter in 2015, and is expected to have a positive impact on the company's performance.

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< p > < strong > related links < /strong > < /p >

< p > < strong > Haining City: the Central Plains market is expanding in different places. < /strong > < /p >

< p > Zhengzhou Haining China Leather City, located in Zhengzhou Green Park Industrial Park, north of Zhengkai road and east of Wansan road.

The area of the project is about 150 mu, and the total investment is expected to be 750 million yuan. It is expected to open in the second half of 2015.

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< p > Henan market has huge leather demand. The company has a market in Xinxiang, Henan, which owns 51% of Xinxiang Haining leather city.

The Xinxiang market opened in 2011, with a total area of 75 thousand square meters, excluding the sale part. At present, the actual rental area is 54 thousand and 400 square meters.

In the 2011-2012 year, the net profit of Xinxiang market was 4 million 600 thousand yuan and 1 million 160 thousand yuan respectively. In 2013, because of more than 4000 square meters area, the annual net profit was 11 million 730 thousand yuan. In 2014-2015 years, we estimate that the net income of its lease is only about 1 million 100 thousand.

Compared with the huge Henan market, the volume and profit scale of Xinxiang market are very small, which is not consistent with the company's strong expansion strategy.

In our opinion, it is mainly based on several aspects: 1) Xinxiang city has less radiation ability.

Xinxiang is located in the north of Henan. Although it is adjacent to Zhengzhou, it is far behind Zhengzhou in terms of economic strength and comprehensive competitiveness.

2) the volume of Xinxiang market is relatively small, and its positioning is different from the consumption habits of the Central Plains customers. Since its opening in 2011, its overall profit scale is lower than expected.

Therefore, the company intends to invest in the central location of Zhengzhou and even Henan, with convenient pportation and obvious regional advantages, and can cooperate with the "happy world" and "Green Expo Garden" in the green park.

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< p > > as the "a href=" http://sjfzxm.com/news/index_s.asp "leather market < /a > the whole industry chain integrator, the company has successfully copied Liaoning Tong Er Bao, Jiangsu Shuyang, Henan Xinxiang and Sichuan Chengdu in addition to Haining port. In 2014, the three phase of Harbin and Tong Er Bao is expected to open, and Tianjin and Ji'nan projects are expected to be put into operation in 2015.

Through this replication and rolling development mode, the company has achieved continuous improvement in market share.

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