2017-03-24

Taroko Commercial Real Estate Business Results Show Future Performance Ready to Develop

In recent years, Taroko has been transformed into a commercial real estate development and operation, and the commercial real estate business in Taiwan and China has gradually shown its success, including the opening of the Kaohsiung Caoya Road Shopping Center in Taiwan at the end of 2015, which is expected to attract 10 million visitors per year. The two current bases of the China business (Suzhou Wuzhong Store and Chengdu Chunxi Store) have a total monthly performance of nearly RMB 2 million (about NT$10 million), and in the future, Taroko will also set up offices in Shanghai, Chongqing and other places, and its operating performance will continue to be good.

The results of commercial real estate operation at home and abroad in Taroko have gradually shown growth momentum
Taroko has successfully transformed commercial real estate development and operation, and the results of its operations in Taiwan and China are gradually showing, and it is expected that the operation will turn into a profit when it starts next year. Taroko’s first flagship development in Taiwan, “Taroko Caoya Road Shopping Center”, features motorsport and sports leisure as its business theme, combining shopping, leisure, dining, sports, go-kart, amusement park and other multiple experiences. At present, the investment promotion progress of Caoya Road Shopping Center has exceeded 70%, the construction progress has progressed to the second floor of the structural engineering, and the basic works of amusement equipment are also progressing simultaneously, which is expected to be completed and operated by the end of this year, and is expected to attract more than 10 million visitors every year, becoming a new landmark in Kaohsiung.

In terms of China’s market, Taroko will continue to cooperate with world-renowned enterprises, following the cooperation between AEON, Japan’s largest retail group, Wharf, a well-known real estate developer in Hong Kong, and Vanke, the world’s top three real estate developers, Taroko and Longhu, the largest real estate developer in Chongqing, will officially cooperate.
In Suzhou Wuzhong store, which cooperates with AEON, it has been in operation in April 2014, and the monthly turnover has reached 60~800,000 yuan (about NT$300~4 million); The Chunxi store in collaboration with Wharf in Chengdu IFS opened in November 2014 and has grown its turnover in the four months since its opening, from NT$900,000 (NT$4.5 million) in December, NT$1.08 million (NT$5.4 million) in January to over RMB1.3 million (NT$6.5 million) in February. Looking forward to the coming year, the Shanghai base cooperated between Taroko and Vanke and the Chongqing base cooperated with Longfor will also open one after another. Taroko said that the initial exhibition areas in the mainland will be mainly in the Yangtze River Delta, East China and Southwest China, and will also plan to set up points in North China and Central China in the long term, aiming to have 20 bases in China in 2017.

In order to cope with the expansion of business at home and abroad, Taroko will expand the recruitment of talents and enrich human capital
With its professional commercial real estate management team and more than 10 years of solid experience in the leisure and sports industry, Taroko diversified operation and diversified services to meet the market consumer demand. In order to meet the talent needs of Taroko in the development of domestic and overseas markets, Taroko plans to expand talent recruitment and enrich talent capital this year, so as to facilitate further business development at home and abroad.

Remarks 1:
Taroko Textile Co., Ltd
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. In 2014, Taroko opened two stores in Suzhou with AEON Group and in Chengdu with Wharf Group. In the future, Taroko will continue to deepen the market of the cross-strait market and carry out bilateral cooperation with major real estate developers.
Remarks 2:
Longfor Properties Limited (HKEx: 0960) is a Chinese real estate development company established in Chongqing in 1994, mainly engaged in the development of high-end residential and commercial properties throughout China, with a view to creating high-end commercial properties and villas.
In November 2009, Longfor Properties launched an IPO in Hong Kong, raising up to HK$7.1 billion, and the company introduced Temasek Holdings, Government of Singapore Investment Corporation, Bank of China Investment Company Limited (BOCGI), Ping An Insurance and Hongkong Land as base investors, while Soros’ fund also subscribed for Longfor Properties for HK$200 million.