During September 13–15, 2021, the 19th Annual Conference of Mall China International Forum & CASC Expo 2021 themed on “Sustainable Development of Product Competitive Advantage, Operational Capabilities and Capitalization”, was grandly held in Shanghai. On the evening of September 14, “Mall China Golden Mall 2021 Professional Competitiveness List” was officially released in Shanghai. Both Xiamen Galaxy COCO Park and Jiaxing Galaxy COCO City, the representative projects operated and managed by E-Star CM, won the grand awards! Among them, Xiamen Galaxy COCO Park, the first full-lease project of E-Star CM in Haixi, was selected in the “Mall China Golden Mall 2021 Urban Promotion Excellence List” for its tremendous boost to the commercial growth in Xiamen. With the high starting point and prospective planning and design concepts, Jiaxing Galaxy COCO City, the first full-lease project of E-Star CM in Zhejiang Province, was selected in the “Mall China Golden Mall 2021 Planning and Design Excellence List”.
Maintain the Momentum of High Performance Growth
Remarkable Achievements in Project Expansion for Deeper Engagement in the Greater Bay Area
E-Star CM (6668.HK) was successfully listed on the Main Board of HKEX on January 26 this year as the first stock of purely commercial operation services in the Hong Kong stock market. From January to June 2021, E-Star CM showed continuous optimization of financial indicators and high growth momentum in both revenue and profit, achieving operating income of about RMB 257 million, a year-on-year increase of about 27.8%; gross profit of about RMB 146 million, a year-on-year increase of about 29.2%; net profit attributable to the parent company of about RMB 83 million, a year-on-year increase of about 43%. The company also maintained a relatively high level of profitability, with a gross profit margin of about 56.7% in the first half of the year, a year-on-year increase of about 0.7%; net profit margin attributable to the parent of about 32.3%, a year-on-year increase of about 3.5%.
As of June 30, 2021, the company’s total contract construction area was about 3.48 million m2, with a total of 69 projects, of which the area of projects from third parties accounted for about 61.9%. By region, there are 44 projects in the Greater Bay Area, 10 in the Yangtze River Delta, 4 in Central China, and 11 in the other regions. The company’s business footprint has covered 24 cities in China, including Shenzhen, Guangzhou, Shanghai, Tianjin, Nanjing, Chengdu, Changsha, Xiamen, and other major cities.
In August 2021, E-Star CM secured the Guangzhou International Medicine Port (GIMP)project (120,000 m2), bringing the total contract area to 3.6 million m2. Together with the area of 22 consulting projects, the actual service area reached about 4.4 million m2, a powerful demonstration of the company’s market-oriented development capability and also an infinite source of drive for sustainable growth in the future.
In the future, E-Star CM will continue to implement high-quality expansion through multiple channels simultaneously based on the strategies of “consolidating the development in the Greater Bay Area, enhancing the growth in the Yangtze River Delta, seizing the opportunity to access the Southwest market, and selecting the best timing to enter high-quality cities”. Meanwhile, it will continue to promote three operating modes (entrusted management, brand management and output, and overall leasing) vigorously to acquire more commercial properties and seek strategic M&A opportunities to expand market share as appropriate.
High-quality commercial space created by refined operation
The outstanding performance stems from the remarkable results of the company’s project expansion on the one hand, and the sophisticated project operation and management on the other. With the continuous development of the management scale, E-Star CM has gradually formed its unique style. Through refined operation and digital layout, it continuously improves the quality of operation to build high-quality commercial space. In the first half of this year, the occupancy rate of the company was as high as 94.7%, reaching the average of TOP 5 nationwide, another increase of 0.4% from the end of 2020. The high occupancy rate is the foundation that guarantees the rental and other income in commercial property operation and also a demonstration of the company’s core operating strength.
From 2017 to 2020, E-Star CM carried out a zoning renovation on Shenzhen Futian Galaxy COCO Park. The simultaneous building upgrade and brand iteration have maximally ensured the sales and customer count during the renovation period. In 2021, the Shenzhen Futian Galaxy COCO Park project presented brand-new vitality. In the first half of 2021, its sales increased by 10.7% over the same period in 2019, and the occupancy rate reached 99.4%.
Picture | Shenzhen Futian Galaxy COCO Park
As the pandemic is brought under control, the business growth is gradually recovering. E-Star CM has planned a series of events to stimulate business vitality further. From August 6 to 15, 2021, E-Star CM grandly held the 5th “Crazy Shopping Carnival”, an independent IP festival, along with more than 10 shopping malls in nearly 10 cities across the country. The 11 malls participating in the Crazy Shopping Carnival set a new record of “RMB 271 million in sales”. Specifically, compared with last year’s Qixi Festival (Chinese Valentine’s Day), sales climbed by 17.4%; the customer count essentially returned to the pre-pandemic level, gaining unanimous recognition from brand merchants and consumers.
Xiamen Galaxy COCO Park
Drive Urban Commercial Growth Based on Urban Benchmark
Xiamen Galaxy COCO Park, which was selected in the “Mall China Golden Mall 2021 Urban Promotion Excellence List” this time, is the first full-lease project of E-Star CM in Haixi and also a commercial benchmark project co-built by E-Star CM and Xiamen Tefang Group. E-Star CM, with its solid strength background, efficient commercial operation capacity and excellent brand reputation, and Tefang Group, with sophisticated urban operation skills and the vision of creating a better urban life, will co-create a benchmark project and drive the improvement of commercial real estate quality in Xiamen.
Picture| Event Site
Xiamen Galaxy COCO Park settles in TFC commercial annex as a commercial entity. Located in the convention, exhibition, business and trade area in the eastern part of Xiamen Island, TFC sits at the intersection of Zhanhong Road and Cailing Road, the regional trunk roads. Exquisitely crafted based on the international 5A standard, the 212-meter high stylish and avant-garde twin tower design perfectly sets off the corporate benchmark image, making it not only the most stunning urban landmark in the eastern part of Xiamen Island but also a downtown vitality experience destination that leads the global fashion and creativity.
Picture | Xiamen Galaxy COCO Park
The project has 6 floors (1 basement and 5 above-ground floors), with a commercial area of about 100,000 m2 (including the commercial parking lot). Located at the core area, the project is supported by the cultural facilities of the Minnan Grand Theater, its own sports facilities and surrounding resources (Olympic Museum, Olympic Tennis City Sports Center, International Tennis Center, Sailing Yacht Area, etc.), as well as the ecological resources of the surrounding parks. In the future, a smart commercial space will be created with the core theme of “trend, novelty, and characteristic” in business planning and placement, brand portfolio introduction, and architectural space shaping to explore the new value of infusing urban life with new color and establish a new benchmark for commercial experience in the Xiamen Convention and Exhibition Area.
Picture | Xiamen Galaxy COCO Park
Jiaxing Galaxy COCO City
Prospective Planning and Design Concepts Facilitate the Fusion of Art and Business
As the first project of E-Star CM in Zhejiang Province, Jiaxing Galaxy COCO City strives to become the leader in urban commerce with a full-sector mall of more than 80,000 m2 and a high-quality shopping mall that demonstrates a new urban lifestyle. Jiaxing Galaxy COCO City is located at the intersection of Changshui Road and Huayuan Road in Nanhu District, Jiaxing, adjacent to Samson International Plaza and Marriott Hotel. Based on more than 760,000 m2 of the high-end urban complex at the Taisheng International Plaza, it comes with its luxury hotel, 5A office building, high-end residential, and other high-quality customers. The project is expected to open in 2022 for business. After grand-opening, it will offer a brand new shopping and leisure experience for nearly 500,000 customers in the business district.
Picture| Event Site
Jiaxing Galaxy COCO City, which was selected in the honorary “Mall China Golden Mall 2021 Planning and Design Excellence List” this time, has a unique architectural space that perfectly integrates art and commerce: The casual dining block on the first floor creates a Galaxy Avenue, the rooftop outdoor space a Galaxy Plaza, and the outdoor atrium terrace a Galaxy Sky Street. The three spatial highlights introduce the urban landscape into the building, blend in naturally with the outdoor, and integrates the indoor and outdoor spaces of the building organically to create a unique space ambiance and theme scene.
Picture| Jiaxing Galaxy COCO City (Rendering)
•Galaxy Avenue: An important commercial axis throughout the whole project, connecting diversified properties with multiple functions to form a “leisure & cozy life” streetscape with natural attractions and sculptures, build an atmosphere of casual dining and coffee, and create the most stylish cultural and social leisure destination in Jiaxing.•Galaxy Plaza: An effective use of outdoor space on the roof with an architectural feature that links indoor and outdoor commerce by reshaping the outdoor roof to build a roof sports park themed on trendy cool sports, provide outdoor sports space for surrounding customers, and endow the project with a perfect life state of health, vitality, positive energy.•Galaxy Sky Street: Ingeniously designed terraces, set-back space on 3-5 floors, and other spaces for perfect integration of ecological scene and leisure experience through innovative architectural design and characteristic customer flow design, to create the most distinctive scene-style aerial casual dining and bar block in Jiaxing with stylish bars, high-end restaurants, rooftop garden bars, etc.
Picture| Jiaxing Galaxy COCO City (Rendering)
In the last two decades, E-Star CM has been devoted to “creating urban prosperity with business wisdom” to provide cities with commercial spaces and services with comprehensive functions and infinite vitality, promote the continuous innovation of urban commercial space operations, and make people’s lives brimming with more fantastic imagination.