“上海六百”拆除重建进入第二年操盘方徐家汇：总投资拟增加近140%

Core Viewpoint - The company Xu Jia Hui has announced a significant increase in investment for the "Shanghai Liu Bai" urban renewal project, raising the total investment from 7.08 billion yuan to 16.98 billion yuan, an increase of nearly 140% [1][2]. Investment Project Overview - The "Shanghai Liu Bai" project, originally established in 1952, is undergoing demolition and reconstruction to create a modern shopping center that meets contemporary consumer needs [1][2]. - The total construction area of the project will increase from 19,200 square meters to 42,500 square meters, with the number of floors rising from 10 above ground and 1 below ground to 30 above ground and 2 below ground [2]. - The construction period has been extended from an estimated 18 months to 30-36 months, and the investment recovery period has increased from 15-17 years to the 19th year of operation [2]. Funding Source Changes - The funding strategy for the project has shifted from primarily using the company's own funds to a combination of self-funding and external financing [3]. - The company acknowledges that the adjustments will lead to increased upfront costs and extended construction and return periods, impacting short-term performance [3]. Strategic Development Context - The investment adjustment aligns with the "Big Xu Jia Hui" development strategy promoted by the Xu Hui District of Shanghai, aimed at enhancing the commercial landscape and upgrading the Xu Jia Hui business district [4][5]. - The project will feature a combination of apartment-style hotels and flagship stores, designed to attract high-end consumers and create a cycle of living and consumption [5]. Financial Performance - In the 2024 annual report, the company reported total revenue of 438 million yuan, a year-on-year decrease of 19.11%, and a net profit of 4.225 million yuan, down 94.38% [6]. - The 2025 semi-annual report indicated a total revenue of 189 million yuan for the first half of the year, a decrease of 16.44%, but a net profit of 466,470 yuan, reflecting a significant increase of 325.65% year-on-year [6].