Hang Lung'S Expansion In The Two Or Three Tier Cities Is Not The Key To Making Money.

Shanghai Heng Long square, Hong Kong Hui Long square has contributed more than 60% of the mainland revenue.

The rental income of Hang Lung Plaza in Nanjing West Road, Shanghai increased by 9% to 8.85 billion Hong Kong dollars compared with last year. The rental income of Hong Kong's Hang Lung Lung Plaza increased by 3% to 1 billion 196 million Hong Kong dollars.

The rental income of six shopping malls except Shanghai is HK $1 billion 206 million.

In 2015, the total revenue of Hang Lung Group fell by 46%, the first time in 2011 that it suffered an annual revenue decline.

Chairman of Hang Lung Real Estate Board

"Now that we are entering the mainland, the retail environment is the most difficult time. It is not wise to have too high expectations," he said.

The annual report attributed the decline in total revenue to less residential units sold.

In 2015, the Hang Lung Group sold 63 residential units and some parking spaces, which was significantly reduced compared with 2014 (412 square meters), and property sales revenue also decreased by 88% to 1 billion 198 million yuan.

It plans to invest HK $18 billion in the next three years, and build new high-end shopping centers in Kunming, Yunnan and Wuhan, Hubei in 2018 and 2019.

The acquisition of land and the construction of commercial facilities are the business models of the Hang Lung business by collecting rental profits from merchants.

Although the overall revenue declined, the rental revenue as Hang Lung's main business still increased by 7%.

Mainland China's revenue reached HK $4 billion 194 million, an increase of 60% over the same period in 2011, which has led to overall growth.

At present, there are 10 projects in the mainland of China, which are located in Shanghai, Shenyang, Ji'nan, Wuxi, Tianjin, Dalian, Kunming and Wuhan.

From the data, the increase in the number of shopping malls in the two or three tier cities has not contributed significantly to the company's revenue. The company is still heavily dependent on the two shopping malls in Shanghai.

Shanghai's Hang Lung Plaza and Hong Kong Heng Lung Plaza contribute more than 60% of mainland revenue.

Be located

The rental income of Hang Lung Plaza in Nanjing West Road increased by 9% to 8.85 billion Hong Kong dollars compared with last year. The rental income of Hong Kong's Hang Lung Lung Plaza increased by 3% to 1 billion 196 million Hong Kong dollars.

The rental income of six shopping malls except Shanghai is HK $1 billion 206 million.

In recent years, Hang Lung's four Hang Lung Plaza opened in the mainland.

At present, the rental rate of Ji'nan Hang Lung Plaza is 90%, and that of Tianjin Hang Lung Plaza is 88%.

The leased area of Wuxi's Hang Lung Plaza office is more than 70%, the actual rental area is about 60%, and the tenant area of Shenyang's Heng Lung Plaza office building is only 40%.

At the end of last year, the business residence rate of Dalian Hang Lung Plaza was around 50%.

The retail market in second tier cities is hard, and the high grade shopping centers on the usual days are regarded as "luxurious lounges of the citizens".

Within 6 months after the opening of Hang Lung Plaza in Tianjin, there are at least six of the largest retail properties in the region.

Fierce competition and incompletely matched consumption capacity make property vacancy rate slow down.

Hang Lung is also trying to redecorate the Shanghai store. The Hang Lung Plaza started its optimization project in June last year. The project of the Hong Kong Heng Lung Plaza will be launched by the end of this year.

Hang Lung plans to invest 50-60 HK $100 billion in the mainland market every year.

The confidence of the HKU comes from the healthy financial situation. As at the end of December 2015, the cash deposits of Hong Kong dollars were approximately HK $31 billion 300 million, which is more than 6 times the net profit of that year.

Chen Qizong said that even in the face of China's economic slowdown, Hong Kong and Shanghai have been in fact maintaining no borrowing business in the past ten years.