2016-10-05

The textile business of Taroko (1432) officially ended in 2016, and the revenue sources this year accounted for 80% of commercial real estate and 20% of the leisure and entertainment industry, and in recent years, the business results at home and abroad have gradually appeared, including the opening of the Taroko Caoya Road Shopping Center in May this year, the renovation of the new era of Taroko will also be completed in November, and the mainland business Shanghai Qibao Vanke Plaza Taroko Bowling officially opened at the end of October, etc., on the whole, the revenue Taroko has continued to grow this year, in 2017, revenue growth maintained a certain speed, next year the industry gradually into a better situation.

Revenue continues to grow and next year will gradually improve

According to the statistics of the Ministry of Economic Affairs, the revenue of the department store industry from January to August this year was NTD 204 billion, with an annual growth rate of 5.8%, while Taroko (1432) achieved outstanding operating results in the first eight months of this year, with a total cumulative revenue of NTD 606 million, and a cumulative annual growth rate of 197.28%.

Executive Vice President Xu Junqi said, “The biggest growth momentum in the past six months has come from the joining of Kaohsiung Taroko Caoya Road Shopping Center, the opening of Caoya Road is a key milestone in the business of Taroko Shopping Center, and it is also another starting point for the company’s revenue growth.

Taroko Group implements experiential economics and each business group steadily accumulates growth momentum

In the five months since its opening, the number of visitors has exceeded 5 million, and the road has performed well in July this year, although there is a honeymoon period benefit, but it is not easy for large shopping malls, in addition to profit, but also improve the life function of the area and the crowd of tourists. Guo Darui, Managing Director of Taroko Development, said: “As of the end of September, 10% of the business area of Taroko Caoya Road has continued to communicate with the configuration brands to enter Caoya Road, which is expected to bring new momentum to the turnover. The floor renovation of Taichung Taroko New Era Shopping Center, another operating stronghold of Taroko, is also expected to be completed in November, and the Taroko New Era Shopping Center will meet you at the end of this year with a better shopping and leisure experience.”

Taichung New Times officially joined the territory of Taroko Shopping Center in July 2015, and the floor renovation of 1~3F and 6~8F began in May this year, which is expected to be completed by the end of November this year, catching up with the consumer crowd of Christmas and Chinese New Year, and it is expected that after the renovation, the turnover of New Times Shopping Center in 2017 will grow significantly. In addition, the renovation of Taroko New Era takes urban leisure experience as the core, introduces diversified hedonic experience facilities and index brands, and builds Taroko New Era into a shopping mall for family fun, and especially introduces the successful “Game Love Park” new type store – Magic Park in Kaohsiung Caoya Road, with children’s amusement facilities and parent-child restaurants in a large space of 210 pings, hoping to provide a new place for parent-child interaction among families in central China.

China’s market will expand 3-5 new bases next year

China’s leisure and entertainment catering consumption model has unlimited business potential, in 2014 began to rush to attack the Chinese leisure experience market, has successfully cooperated with Japan AEON, Hong Kong Wharf, Longfor Real Estate respectively Suzhou, Chengdu and Chongqing a total of four bases, the opening of Taroko Bowling Alley Chongqing Daping store in July, the performance is slightly higher than expected, at the end of October this year, will be the next city, Shanghai (Qibao) Vanke Plaza in cooperation with China’s largest real estate developer Vanke Group, Daluge Bowling Alley will continue to be stationed in the form of main stores. Shanghai Jichuang Sports Investment Management Co., Ltd., which is responsible for the exhibition and operation of shopping malls in the mainland and holds 99% of the shares in Daluge, said that it expects to expand 3-5 bases in China next year and continue to work with the top 30 real estate developers in mainland China to explore domestic consumption opportunities in China’s first- and second-tier cities.

Note 1: Taiwan Department Store Industry Turnover Unit from January to August 105 of the Statistics Department of the Ministry of Economic Affairs: in Thousand

Note 2: Taroko, a company listed on the Stock Exchange (1432) Change in revenue from January to August 105 Unit: in Thousand

【Taroko Textile】

Taroko Textile started as a textile company, and in recent years has actively transformed into commercial real estate development and operation. As Taroko has nearly 10 years of profound experience in operating the sports and leisure industry, it provides differentiated service solutions for shopping malls with innovative experiential consumption models, and has been recognized by many well-known real estate developers in China, actively discussing cooperation opportunities with Taroko.

【Vanke Group】

Entered the real estate industry in 1988, China’s leading real estate company, currently the main business includes real estate development and property services. In 2015, the revenue was RMB195.55 billion (about NT$999.2 billion), an annual increase of 33.6%, focusing on the development strategy of urban circles, and by the end of 2015, it had entered 66 cities in Chinese mainland, distributed in the Guangzhou-Shenzhen region with the Pearl River Delta as the core, the Shanghai region with the Yangtze River Delta as the core, the Beijing area with the Bohai Rim as the core, and the Chengdu region composed of central cities in the central and western regions. In addition, since 2013, it has been trying overseas investment, and has entered 5 overseas cities including Hong Kong, Singapore, San Francisco, New York and London, and participated in several 10 real estate development projects.