HONG KONG, Sept. 22, 2015 /PRNewswire/ -- Xinming China Holdings Limited ("Xinming China" or the "Group", HKEx stock code: 02699), an integrated residential and commercial property developer in the PRC, today held a press conference with the theme of "The Future Has Arrived - Xinming China, Striving Towards Being Hong Kong's First Listed Child-Centric Property Developer". This is another milestone for the Group this month. Earlier, Xinming China was named one of Top 10 Real Estate Brands in Eastern China by the Development Research Centre of the State Council, the Institute of Real Estate Studies at Tsinghua University and the China Index Academy. At the press conference in Hong Kong, the management of Xinming China briefed participants on its proactive strategies to focus on the child-centric property market, to capture the immense potential and opportunities arising from a new baby boom and the "second-child policy".
Cultivating the child-centric property market in the coming decade
According to China's Sixth National Population Census, there are 220 million people aged 14 and below in the country, accounting for 16.6% of the total population. In addition, a study by the National Health and Family Planning Commission shows that China will herald a new baby boom as the country's birth rates will climb to a high around 2016, with its population set to peak in 2028 following the introduction of the "second-child policy". Moreover, the projected annual birth rates are expected to exceed 20 million, which ensures that the market will continue to flourish. Under the "4-2-1" family structure in China, the six adults in every family show great affection for their only child, and aim to offer the best-quality products and services to him or her. As a result, whether customers are blue-collar, white collar or gold collar, they are willing to spend on their child. More importantly, Xinming China's business model is unlikely to be affected by online shopping platforms as parents prefer to stay with their children in person. Due to the aforementioned three factors, the children's market has grown to become the second largest consumer group after women. To capture the considerable opportunities arising from this group in the coming decade, the Group will proactively expand into the child-centric property market. It has formulated a business strategy of "One Pillar and Four Prongs", which features the expansion of branding for the "Chinese Bambino" business, to be complemented by a development fund, trade fairs and exhibitions, cultural and e-commerce businesses tailor-made for Chinese children.
Chinese Bambino in Shanghai – A cradle of MBC business
The Group is developing a site in Nanxiang, a county situated in north Hongqiao, Shanghai, with a history stretching back beyond a millennium, into a cradle of MBC business. With a site area of approximately 40,000 square meters and a gross floor area of approximately 190,000 square meters, it is scheduled to be completed by December 2015. The Shanghai project will allow several thousand MBC brands to cluster, and can host various MBC trade fairs and exhibitions throughout the year. Further, it will become a venue for hundreds of new product launches and a training venue for thousands of professional babysitters and nutritionists every year. It will evolve into a themed one-stop, multi-functional and complete value chain platform for China's MBC offering trade fair and exhibition facilities, procurement and direct-sales services, cultural exchange and commercial and trade circulation. This will usher in a new integrated operating model which incorporates "commercial properties, business chains and financing investments", thereby achieving the thematic development of Xinming's businesses, the financialization of the value chains and the securitization of commercial real estate.
Chinese Bambino in Hangzhou – a hub for MBC business
Xinming China will invest heavily in the development of a site in the downtown area of Hangzhou as it builds a hub for the MBC business with a site area of approximately 30,000 square meters and a gross floor area of 160,000 square meters. This project, slated for completion by December 2016, will include shopping malls, theaters, hotels, food courts with children-themed, maternal and child supermarkets and pre-school training centers. Upon completion, it will become a "one-stop MBC themed shopping center" for families in Hangzhou.
The Group has picked Shanghai and Hangzhou as two representative cities for the development of its MBC-centric property projects, which will lay a solid foundation for its business expansion under the Chinese Bambino brand to other first- and second-tier cities, and fast-growing cities in China going forward.
Mr. Chen Chengshou, Chairman and Chief Executive Officer of Xinming China, commented, "The Group will develop the Shanghai project as a cradle of its MBC business and the Hangzhou project as a hub for its MBC business, as it aims to fully integrate its resources after reinforcing the competitiveness of its core businesses. They will enable us to leverage various new technologies, new concepts and new media to drive the growth of our commercial property business and to use it as a replicable model to strengthen the Xinming brand in the future. We will make use of the children-centred property business as a platform to carry out value chain consolidation for our MBC business, creating a comprehensive spending platform for families, while solving the problems of conflicting interests, resources and product competition among different enterprises. This will therefore create a value chain for co-existence, co-sharing and win-win for all."
About Xinming China Holdings Limited
Headquartered in Hangzhou, Zhejiang Province, the PRC, Xinming China Holdings Limited ("Xinming China") is an integrated residential and commercial property developer in the PRC. Its business comprises property development, property leasing and property management. As of 30 June 2015, Xinming China has 16 property development projects at different development stages with an aggregate GFA of approximately 2,166,982 sq.m. They are located in Shanghai, Hangzhou, Tengzhou, Chongqing and Taizhou.
