Huafa Properties(SH:600325) Mei Ri Jing Ji Xin Wen·2025-10-09 12:49Core Viewpoint - The trial operation of 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 urgent attempts of leading real estate companies to transition into the "cultural tourism" sector [1][3][6]. Investment and Financial Aspects - The total investment for Shenzhen Qianhai Huafa Ice and Snow World is planned to reach 29.6 billion yuan, making it a benchmark in the domestic indoor ski resort sector, although the investment scale has changed due to government land acquisitions [3][4]. - To alleviate financial pressure, Huafa Co. plans to return seven undeveloped commercial plots to the government by July 2025, which is expected to recover approximately 4.405 billion yuan [4][5]. - The project is expected to generate annual revenue of 650 million yuan and a net profit of 130 million yuan once it reaches maturity [5]. Market Dynamics - The indoor ski market in China is rapidly expanding, with the number of operational indoor ski resorts increasing from 5 in the 2013 snow season to 66 in the 2024-2025 season, representing a growth of over 12 times [7]. - Indoor ski resorts account for 21.61% of total skiing visits in China, with an annual compound growth rate of 15.37%, surpassing the overall skiing visit growth rate of 12.87% [7]. Operational Challenges - Indoor ski resorts face high operational costs due to energy-intensive cooling systems and large operational teams, making cost control crucial while maintaining service quality [5][9]. - The pricing strategy for Shenzhen Qianhai Huafa Ice and Snow World is positioned in the high-end tier, with ticket prices starting at 348 yuan for a 3-hour pass on beginner slopes, reflecting the high investment [5][6]. Strategic Positioning - The project fills a significant gap in Shenzhen's large-scale ice and snow cultural tourism offerings and is seen as a vital development in the context of the Greater Bay Area's integration [7][8]. - 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 [8][9].