Huafa Properties(SH:600325) Mei Ri Jing Ji Xin Wen·2025-10-02 06:23Core Viewpoint - The opening of the Shenzhen Qianhai Huafa Ice and Snow World, certified as the "world's largest indoor ski center," reflects the rapid development of indoor ski resorts in China and the attempts of leading real estate companies to transition into the "cultural tourism" sector [1][3][10]. Investment and Financial Aspects - The total investment for the Huafa Ice and Snow World project is planned to reach 29.6 billion yuan, making it a benchmark in the domestic indoor ski resort sector [3][5]. - Due to the government reclaiming several commercial plots, the total investment scale has changed, highlighting the heavy asset nature of indoor ski resorts, which typically require high investment, high operating costs, and long return periods [3][5]. - To alleviate financial pressure, Huafa Co. returned seven undeveloped commercial plots to the government, recovering approximately 4.405 billion yuan [5]. Market Dynamics - The indoor ski resort market in China is expanding rapidly, with the number of operational indoor ski resorts increasing from 5 in 2013 to 66 by the 2024-2025 ski season, representing a growth of over 12 times [10]. - Indoor ski resorts account for 21.61% of total ski visits in China, with a compound annual growth rate of 15.37%, surpassing the overall ski visit growth rate of 12.87% [10]. Competitive Landscape - Huafa Ice and Snow World has positioned itself in the high-end market, with ticket prices starting at 348 yuan for a 3-hour pass on beginner slopes, which is higher than competitors like Guangzhou Sunac Snow World and Shanghai Yao Snow Ice World [7]. - The project is expected to generate annual revenue of 650 million yuan and a net profit of 130 million yuan once it reaches maturity [7]. Industry Trends - The project fills a significant gap in Shenzhen's large-scale ice and snow cultural tourism offerings and is seen as a vital opportunity within the context of the Greater Bay Area's integration [13]. - Other real estate companies, such as Sunac China and Overseas Chinese Town, are also exploring the "real estate + cultural tourism" model, with Sunac having established a comprehensive system in the cultural tourism sector [14][15].