The performance of Lifestyle China for 2018 can be summed up in four words: “but not lost”. Excluding foreign exchange gains/loss factors, earnings increased by approximately 10%. The source of growth was attributable to the increase in profit of associates and its business was slightly retrogressive.
There is not much room for this performance to be detailed. Everyone is looking at when the Shanghai Daning project will be completed and opened, and whether Liu will take Lifu China as its own. If the performance is good or bad, everyone is not too concerned. Anyway, Liu does not intend to pay dividends.
As always, the management indicated that it intends to sell the properties in Shenyang and Dalian, but it has not been sold because of the unsatisfactory price. The property is still short-lived, and the company has to bear the cost of maintenance and depreciation.
The much-anticipated Daning project is expected to be completed by the end of this year, and then officially opened in the second or third quarter of next year. This project can be said to be delayed and delayed. The total area of the project is about 350,000 square meters, including two office buildings with an area of about 80,000 square meters, which will not be sold and will be rented. The current rent is RMB 6.5-7.5 per square meter per day.
The remaining commercial complex will be used for the opening of the second Jiuguang Department Store and rental. The rent per square is definitely higher than that of the office building.
If you personally inspected the Shanghai Daning project, you know that the project is excellent in location and valuable, and will provide an ideal profit contribution for the company in the future. However, the project was originally expected to be completed by the end of 2018 and is now completed by the end of 2019. Then it will be officially opened in the second and third seasons of 2020, which is the next full-year performance. You still can’t see any profit contribution from this project!
A long wait is to test your patience.