Powerlong has been deploying commercial real estate since 2003, and has now formed a relatively complete commercial product line. On August 20, Powerlong plans to spin off its commercial management and list it, becoming the first asset-light commercial operator in the mainland to be listed in Hong Kong.
The operating indicators of ongoing projects disclosed in the prospectus have triggered heated discussions in the market.
In the past 16 years, has Powerham been a disruptor or a follower of new business?
How to break through in the future?
1 The "two-wheel drive" commercial real estate pioneer has been involved in commercial real estate since 2003. The first Powerlong Plaza opened in Fuzhou in 2007. As of the first half of 2019, Powerlong has entered 26 cities and opened a total of 39 shopping malls and shopping malls.
6 commercial streets.
Looking back at the development history of Powerlong Business, it can be roughly divided into three development stages: The first stage: from 2009 to 2011, the business empire entered a period of expansion, with many branches in the third and fourth tiers blooming.
With the help of Powerlong's successful listing on the Hong Kong Main Board in 2009, it raised more than 2 billion for concentrated development of commercial projects.
In the next three years, Powerlong moved to the third and fourth tiers, and shopping malls entered a period of intensive opening.
In the past three years, 10 new shopping malls have been opened, 6 of which are located in the third and fourth tiers.
Because the newly opened projects are still in the nurturing stage, the substantial expansion in scale has not led to a substantial increase in rent. In 2011, the rental and management income was 284 million yuan.
The second stage: from 2012 to 2013, due to insufficient demand from the third and fourth tiers, the business entered a period of pain.
Due to the excessive favoring of third- and fourth-tier layouts in the early stage, Powerlong Commercial entered a period of pain, and many Powerlong Plazas faced difficulties in the withdrawal of merchants.
From 2012 to 2013, the pace of Powerlong's commercial expansion slowed down. Only 4 shopping malls were opened in two years, with an additional leasable area of ??279,300 square meters, a year-on-year decrease of 62.67% compared to the previous two years.
At the same time, the financial situation declined significantly. In 2013, the comprehensive gross profit margin fell below 30% for the first time, falling to 28.32%.
Under this circumstance, Powerlong plans to change its business layout strategy and proposed for the first time in 2013 to "deeply cultivate Shanghai and focus on the Yangtze River Delta".
The third stage: from 2014 to the present, shifting to the layout of first- and second-tier satellite cities, deeply cultivating communities, and testing the waters for high-end complexes.
2014 passed the painful period of transformation; in 2015 alone, Powerlong opened 7 new shopping malls in first- and second-tier cities such as Shanghai, Hangzhou, and Qingdao, with a new leasing area of ??312,900 square meters, a significant year-on-year increase of 141%.
While adjusting its strategic layout, Powerlong also reorganized its product lines in 2015, forming four major product lines: Powerlong Plaza, Powerlong World, Powerlong City and Powerlong One City, basically covering the community level, district level and city level;
In 2016 and 2018, the high-end positioned Powerlong City and Powerlong One City were launched respectively.
Now Powerlong's commercial operations have entered a stable growth range. From 2014 to mid-2019, retail commercial rent and management fee income both maintained a growth of more than 30%.
At the same time, the pace of commercial expansion has not slowed down. Powerlong plans to open 6 new shopping malls in the second half of 2019, 10 new shopping malls in 2020, and 9 new shopping malls in 2021.