The Group has actively seized the opportunities brought about by land function adjustment of logistics parks arising from the urbanization process and vigorously progressed the transformation and upgrade of logistics parks in Shenzhen, in the hope of maximizing the value of the Group’s assets and in turn value for its shareholders.

Qianhai Project

Through such land consolidation and preparation work in Qianhai, the Group acquired land with a total area of approximately 120,000 square meters and a gross floor area of approximately 390,000 square meters (comprising residential area of approximately 190,000 square meters and apartment area of 25,000 square meters, which are available for sale) under the new land use arrangements. As the swapped land parcels are gradually developed and released into the market, it will promote the comprehensive development of the Group’s logistics-related land which would in turn continuously boost the Company’s performance.

The first phase of the Qianhai Project has a total gross floor area of approximately 110,000 square meters, comprising 51,000 square meters of residential project, 35,000 square meters of office project and 25,000 square meters of commercial project. Project design, application and construction are being carried out in an orderly manner. As at 31 December 2020, the first phase of the Qianhai Project is preparing for inspection and acceptance procedures. The residential project which was jointly developed by the Group and Shum Yip Land Company Limited was launched for pre-sale in October 2019. The pre-sale of this project went beyond expectations and all units had been sold out in the first half of 2020. For the office project, which was positioned as the information port for the “Belt and Road Initiative”, it was jointly constructed and developed by the Group and China Center for Information Industry Development（中國電子信息產業發展研究院）(“CCID”) and is included in the “3-Year Action Plan of Shenzhen to Participate in the Construction of the Belt and Road (2019-2021)（深圳市參與「一帶一路」建設三年行動方案（2019年－2021年））”. Capitalizing on Qianhai’s special position and policy advantage in the Guangdong-Hong Kong-Macao Greater Bay Area, the project will benefit from the Group’s extensive supply chain management experience and CCID’s strong information technology service capacity and will focus on the development of supply chain services and smart manufacturing services as well as promoting the comprehensive integration of the digital and real economies across the Guangdong-Hong Kong-Macao Greater Bay Area and countries/regions along the Belt and Road. Meanwhile, the Group is conducting in-depth study to devise a development and operation plan with SCPG（印力集團）for the commercial project with the aim of capitalizing the strength of each party and turning the Mawan area in Qianhai into a unique boutique commercial project.

The second phase of Qianhai Project has a plot ratio-based gross floor area of approximately 110,000 square meters (comprising residential area of approximately 91,000 square meters). Preliminary works such as design and tendering of the second phase of the Qianhai Project is currently underway. Considering the overall planning of and the shortage of pure residential projects in the Qianhai area, it is expected that the construction and sale of the Qianhai project will enhance the value of the Group’s resources in the area.

The Third Phase of Qianhai Project has a plot ratio-based gross floor area of 172,000 square meters, comprising residential area of approximately 50,000 square meters and apartment area of 25,000 square meters available for sale. It also comprises office buildings with a floor area of 79,000 square meters as well as commercial floor area of 17,000 square meters, which are available for sale. To promote the comprehensive development of the Group’s logistics-related land, the Group plans to conduct an in-depth cooperation with the Qianhai Authority to establish a bonded R&D center, an international logistics distribution center, a Shenzhen-Hong Kong distribution center and a bonded exhibition and exchange center, which are all in the interests of the Group and its shareholders as a whole.