Seizing the unprecedented opportunities presented by urbanization in China, the Group is proactively driving the transformation of its logistics park projects in key urban centers such as Shenzhen. Through upgrading, transformation, development and operation of its logistics park projects, the Group is dedicated to implementing a long closed-loop business model of “Investment, Construction, Operation and Transformation”. The Group’s logistics park transformation and upgrading projects maximize the value of relevant assets and its investment returns, which in turn provides long-term support for the Group’s business development and performance, and contributing substantial returns to the shareholders of the Company.

SZI Qianhai Project

Qianhai Project is the first project in which the Group has successfully implemented its long closed-loop “Investment, Construction, Operation and Transformation” development model. By the land consolidation and preparation in Qianhai, the Group was compensated through a land swap by which it received land parcel with a total site area of approximately 120,000 square meters and a total gross floor area of approximately 390,000 square meters (comprising residential area of approximately 190,000 square meters and apartment area of approximately 25,000 square meters), which is valued at RMB8,373 million under new land use arrangement. The appreciation of the land value represents the initial benefit derived from the land consolidation and preparation in Qianhai. With the gradual development of the swapped land parcels and completed properties are being released into the market, the Qianhai Project has generated a profit before tax of approximately RMB14,219 million in six separate instances over the past few years, supporting the Group’s financial performance growth steadily. It will also furnish the Group with valuable experience, laying a solid foundation for the seamless execution of its forthcoming transformation and upgrading initiatives.

Residential Project

The Yicheng Qiwanli Project developed and operated solely by the Group, has a plot ratio-based gross floor area of approximately 65,000 square meters, comprising a residential gross floor area of approximately 51,000 square meters and a commercial gross floor area of approximately 6,000 square meters. In 2023, the Yicheng Qiwanli Project has garnered numerous international awards such as “MUSE Design Awards”, “International Property Award 2023” and “IDA International Design Award”. The pre-sale of the project commenced on 28 September 2022 and was completed and delivered in December 2023, recognizing revenue of approximately RMB4,952 million and profit before tax of approximately RMB2,635 million.

Commercial and Office Project

As for the commercial part, the Group and SCPG（印力集團）have harnessed their respective strengths to jointly create a unique boutique commercial project known as “Qianhai Yinli” in Mawan area of Qianhai. “Qianhai Yinli” has a total gross floor area of approximately 25,000 square meters. As a slow-paced, courtyard-style neighborhood of a type rarely found in Qianhai and Shenzhen, the project integrates a digitalized lifestyle with a superior quality of life, culture and arts, and social interactions. The project officially commenced operation in September 2022.

As for the office part, the Group jointly managed and operated “SZI Properties (Shenzhen Yidu Building)” with China Center for Information Industry Development (“CCID”), an enterprise directly controlled by the Ministry of Industry and Information Technology. In May 2022, Yidu Building obtained the LEED-CS Platinum certification from the U.S. Green Building Council, signifying the project’s status as one of the world’s top green office buildings. Since its launch in July 2021, Yidu Building has positioned itself as an artificial intelligence of things+ (AIoT+) ecological courtyard with industrial operation services, successfully attracting a variety of digital economy enterprises as tenants.

In addition, the Group owns two separate land parcels in Qianhai, which are designated for office and commercial uses. These land parcels have an aggregate plot ratio-based gross floor area of approximately 92,000 square meters, comprising office gross floor area of approximately 79,000 square meters, commercial gross floor area of approximately 12,000 square meters and community service center with a gross floor area of approximately 1,000 square meters. Given that the two sites are situated within the bonded area, the Group is currently in discussions with government departments regarding related land swap and development issues.

SZI South China Logistics Park Transformation Project

Pushing forward the high-quality transformation and upgrading of the SZI South China Logistics Park, which is located in the central axis and core node of Shenzhen, and transforming it into a “South China Digital Economy Super Headquarters Base”, reflects the Group’s steadfast commitment to pursuing high-quality development. This represents a major attempt of the Group in exploring the long closed-loop business model of “Investment, Construction, Operation and Transformation”. The Group entered into the “Land Consolidation and Preparation Supervision Agreement” with Shenzhen Longhua City Renewal and Land Development Bureau, Longhua Administration of Planning and Natural Resources Bureau of Shenzhen Municipality, and Shenzhen Longhua Minzhi Subdistrict Office in October 2023 for the consolidation and preparation of approximately 530,000 square meters of land for phase I of SZI South China Logistics Park. The project will be implemented by way of reservation of land and monetary compensation.

SZI Intelligent Logistics Hub (SZ Pingshan East)

The Shenzhen Pingshan East project covers a site area of approximately 267,000 square meters and is primarily used as Walmart’s logistics and distribution center in Shenzhen. In line with the strategy of “developing real economy, strengthening manufacturing industry, striving for new quality productive forces” advocated by the Shenzhen Municipal People’s Government, the Group will actively promote the transformation and upgrading of Shenzhen Pingshan East project, taking into account factors such as the project’s surroundings, comprehensive land development potential, and transportation capacity, so as to achieve a new model of in-depth integration between the “Multi-storey Logistics” and manufacturing industry. The Group intends to establish an industrial park that integrates “Production, Living and Ecology” as planned, to meet world-class standards, with emphasis on high quality, low costs, excellent services with comprehensive facilities and fully furnished equipment. The Group endeavors to transform the project into a pilot benchmark initiative for “Multi-storey Warehouses + Multi-storey Factories” in Shenzhen.

Updated on 29 August 2024