Core Viewpoint - The potential sale of SKP by Beijing Hualian Group to Boyu Capital reflects the declining luxury goods market in China, with a projected 18%-20% drop in personal luxury goods sales in 2024 [3][9]. Group 1: SKP Overview - SKP, located in the core business district of Beijing, has been a landmark high-end shopping center, achieving daily sales exceeding 1 billion yuan [5][6]. - Established in 2007 through a partnership between Taiwan's Shin Kong Mitsukoshi and Beijing Hualian, SKP was positioned as a high-end shopping destination from the outset [6][7]. - The shopping center has hosted over 938 brands, including more than 90 top international brands, with over 40% making their debut in Beijing [6][8]. Group 2: Financial Performance - SKP's sales performance has been remarkable, with revenues reaching 6.5 billion yuan in 2012, 7.2 billion yuan in 2013, and 7.5 billion yuan in 2014, making it the highest-grossing mall in China for twelve consecutive years [8]. - However, projections indicate a 17% decline in sales for 2024, estimating revenues around 22 billion yuan, down from 26.5 billion yuan in 2023 [9]. Group 3: Boyu Capital's Acquisition Strategy - Boyu Capital, managing nearly 10 billion USD, focuses on private equity investments in high-growth sectors, with recent activities in technology, pharmaceuticals, and consumer goods [12]. - The acquisition of SKP is seen as a strategic move to enhance Boyu Capital's portfolio in high-end commercial real estate, aiming to create a "high-end consumption ecosystem" [14]. - Boyu Capital has been active in the real estate sector since 2017, previously investing in Vanke Property and acquiring shares in Jin Ke Service Group [12][13]. Group 4: Market Context - The sale of SKP is not an isolated incident; other significant transactions in the real estate market include Alibaba's sale of Intime Retail for 7.4 billion yuan and Miniso's acquisition of a stake in Yonghui Supermarket for 6.27 billion yuan [15]. - The luxury retail market in China is projected to grow, with forecasts suggesting that by 2030, China will become the largest luxury goods consumer globally, positioning SKP as a valuable asset in this evolving landscape [15].