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].

Core Viewpoint - The company is adjusting its major investment project, the Shanghai Liu Bai Urban Renewal Project, to align with the updated urban planning requirements and enhance its future transformation and development [3][11][19]. Group 1: Board Meeting Summary - The 17th meeting of the 8th Board of Directors was held on September 17, 2025, with all 9 directors present, and the meeting complied with relevant laws and regulations [2]. - The board approved the proposal to adjust the major investment project, which will be submitted for shareholder approval [3][4]. - The adjustment is necessary due to significant changes in building indicators from the urban planning proposal, aiming to align the project with local planning and promote regional economic development [3][11]. Group 2: Project Adjustment Details - The project adjustment includes changes in construction content, functional positioning, and total investment to meet the updated urban planning requirements [11][14]. - The total planned investment for the Shanghai Liu Bai Urban Renewal Project is approximately 1.698 billion yuan, including related surrounding infrastructure projects [10]. - The board also approved a new round of design bidding for the project, with an estimated design contract amount not exceeding 15 million yuan [5][8]. Group 3: Impact and Feasibility Analysis - The project aims to enhance asset value by combining a serviced apartment hotel with flagship stores, catering to high-end consumer needs and stabilizing rental income [15][18]. - The adjustment is seen as a strategic move to cope with intense competition in the retail sector and to explore new paths for transformation [14][15]. - The company plans to dispose of approximately 22 million yuan of previously incurred costs related to the project, which will reduce the profit for 2025 by the same amount [19][20].

Core Viewpoint - The company Xu Jia Hui is significantly increasing its investment in the Shanghai Liu Bai project, raising the total investment from 708 million yuan to 1.698 billion yuan, an increase of nearly 140% [1][3]. Investment Adjustment - The total investment for the Shanghai Liu Bai project has been adjusted to 1.698 billion yuan from the previous 708 million yuan [1][3]. - The project’s total construction area has increased from 19,200 square meters to 42,500 square meters [3]. - The building height has been raised from 50 meters to 130 meters, and the number of floors has increased from 10 above ground and 1 below ground to 30 above ground and 2 below ground [3]. - 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 [3]. Funding Sources - The funding strategy has shifted from primarily using the company's own funds to a combination of self-funding and external financing [4]. Long-term Strategy - The project is seen as a long-term strategy for the company to enhance its profitability and core competitiveness by meeting modern consumer demands through a combination of apartment-style hotels and flagship stores [4][5]. - The project aligns with the "Big Xu Jia Hui" development strategy aimed at upgrading the commercial landscape in the Xu Hui district [5]. Competitive Landscape - The company acknowledges the challenges faced by the retail industry, including weak demand and increased competition from e-commerce [6]. - The combination of apartment-style hotels and flagship stores is intended to attract high-end consumers and stabilize rental income and operational performance [6].

Core Insights - The new Six Hundred YOUNG project aims to rejuvenate the former Pacific Department Store site in the Xujiahui commercial area, focusing on a family-oriented interactive consumption experience with the theme "Grow Young Together" [1][5] - The project is set to open for trial operations in the first quarter of next year [2] - The Xujiahui commercial area has evolved significantly since the 1990s, transitioning from a department store-centric model to a more diverse shopping center ecosystem [3][4] Group 1: Project Overview - New Six Hundred YOUNG will feature four main segments: urban playground, co-creation lifestyle space, urban social space, and young sports area, targeting family interactions [1][5] - The total building area of the new project is approximately 32,000 square meters, with a design that includes a nine-level spatial gradient layout and a three-story high glass curtain wall [5] - The project will connect with major commercial nodes through an aerial corridor and subway access, creating a "transportation + consumption + social" integrated lifestyle loop [5] Group 2: Historical Context - The Xujiahui commercial area emerged in the 1990s, with the Pacific Department Store being a key player in introducing dining, leisure, and entertainment into department stores, setting a trend in the industry [3] - The Pacific Department Store in Xujiahui operated for 30 years before closing on August 31, 2023, due to the shift in consumer preferences towards shopping centers and the impact of e-commerce [4] Group 3: Urban Renewal and Future Plans - The Shanghai Six Hundred urban renewal project will undergo a complete demolition and reconstruction starting February 19, 2024, transitioning into a comprehensive boutique shopping center [6] - The urban renewal plan for the Xujiahui area includes a "butterfly" functional structure with diverse themes, aiming to enhance the commercial ecosystem and attract younger consumers [7]

Group 1 - The company announced that the Shanghai Liubai Urban Renewal Project may face redesign due to the latest publicized planning adjustment scheme [1] - The project aims to demolish and rebuild existing structures to create a comprehensive boutique shopping center that meets modern consumer demands [1][3] - The total planned investment for the project after adjustments is 708 million yuan, with an expected increase in commercial area by 12%-24% [3] Group 2 - As of the annual report disclosure date, the company has not yet obtained the construction planning permit and construction permit, delaying the project [1] - The company will continue to strengthen communication with relevant authorities and closely monitor the approval process to push the project forward [1] - Recent public notices indicate significant changes in building indicators that may require the company to adjust the project design, investment total, and construction timeline [2][3]