“We are possibly planning to increase the shares of Nanjing Cenbest [11.17 0.90% Guba] on the secondary market in recent days”, disclosed by Yuan Yafei, Chairman of Sanpower Group to the journalist.

　　On July 3, the general meeting of shareholders of Nanjing Cenbest (600682.SH) adopted the board of direction reelection plan: where Wang Heng and Li Guiju from the Golden Eager Group quitted from the board of directors, but Chen Yonggang was remained; Sanpower Group, the new holding shareholder, would send Yang Huaizhen, the vice president and vice chairman and Yi Chuilin, the vice chairman to take office of directors; where the former would replace Wang Heng to take office of the president of Nanjing Cenbest.

　　According to the news acquired by the journalist, Yuan Yafei regarded Yang Huaizhen as the “good manager” of Sanpower Group. When working in Sanpower Group as the vice president and vice chairman, Yang was also the vice president of Hiteker [6.55 0.61% Guba](600122.SH), a holding company of Sanpower Group.

　　The reelection of the board of directors was deemed as the first step of Nanjing Cenbest for “Golden Eager Program”.

 

Establish building-oriented e-business hitech enterprise park

　　In fact the problems that are urgent to be solved by Nanjing Cenbest are the inner innovation of Floor 1~8 of the master building, rent and sales of office building and the problems to be faced by Yancheng Real Estate Project and etc. 

　　Currently Nanjing Cenbest has completed the innovation construction on the external wall. According to the disclosed plan, the business floors 1~8# shall be innovated gradually in future.

　　Yang Huaizhen told the journalist the inner innovation plan had not yet determined, however the innovation construction would be commenced soon (in July); the overall innovation period would last for 6 months and be completed before the Spring Festival.

　　For the office building on the master building, Nanjing Cenbest was originally planning to sell 30,000m2 of 70,000m2, and then rent the rest floors. Nanjing Cenbest signed an agreement with DTZ to entrust it to sell the floors of 30,000m2 and rent the floors of 13,000m2, and it is planned to sell and rent 95% around by the end of this year. According to the information acquired by the journalist, the “for rent” plan of the office building of Nanjing Cenbest is still valid, now the floors of 10,000~20,000 m2 have been rented successfully by Epson, Acer, Itochu Corporation and other world top 500 enterprises at the rent of RMB4.0/day/m2.

　　Yang Huaizhen introduced that Nanjing Cenbest would construct Cenbest Building into the building-oriented e-business hitech enterprise park. “However it is a plan only, we are now discussing with Baixia District Government”, said by Yang Huaizhen.

　　Except the owners of Cenbest Building, the two property projects of Nanjing Cenbest are also the focus of the market. 

　　Currently, Yancheng Leiganghu Project, being granted the project approval and construction land planning permit in 2010, is now under the “piling” stage. According to the introduction made by Yang Huaizhen, the 3 residential buildings of 60,000m2 of the Phase I project would be opened for sales in May and June next year.

　　The existing information available to the journalist shows Yancheng Leiganghu Project covers a land about 126.76mu and the land cost was RMB0.167 billion.

　　According to the statistical data made by Ouyang Jinjuan, an analyzer of Wanlian Securities, the project’s plot ratio is 2 and the average sales price is RMB5,000 (currently the residential buildings around the project are sold at the price of RMB4,500~RMB6,500). Upon the development by two phases, the project shall achieve the sales income of RMB0.845 billion, and the net profit shall be about RMB0.127 billion (after deducting the development cost and the relevant tax).

　　However Yang Huaizhen said the project in Yancheng would focus on residential building development and would be developed by three phases; additionally the land about 6,000m2 would be developed for the commercial purpose. However the specific settlement cycle is not yet determined and it is estimated to be available around the year of 2013.

　　According to the introduction made by Yang Huaizhen, the real estate project of 300mu approximately in Hexi, Nanjing is still being proceeded with the relevant formalities; it is not yet determined if it would be developed for commercial purpose or for residential building

　　According to the estimate of Wanlian Securities, the project’s cost, if the land cost and the resettlement compensation is RMB0.30 billion, would be around RMB1,500/m2; however the buildings around the land are now being sold at the price of RMB18,000~RMB20,000/m2.

　　Nanjing Cenbest signed the agreement with Golden Eager Group Retail Group (3308.HK) , a listed company subordinating to Golden Eager Group and Dongfang Mall at the end of 2009 to let Golden Eager Retail Group manage Dongfang Mall, and the entrustment period is January 1, 2010 to December 31, 2012. However since the listed company changed, the issue if Dongfang Mall shall be entrusted to Golden Eager Retail Group for operation management is not yet determined; “We shall negotiate with Golden Eager at the end of this year”, said by Yang Huaizhen.

 

Sanpower is planning to increase share percentage  

　　Currently the first three shareholders of Nanjing Cenbest holds the share percentage as follows, i.e.: 17% by Sanpower Group, 15.74% by State-owned Assets Supervision and Administration Commission of Nanjing Municipal Government and 12.98% by Golden Eager Group,

　　For the possibility to increase share percentage, Yang Huaizhen said “the share price of the company is rather reasonable”. However the official of Huatai Securities[12.04 0.33% Guba] said that “the remaining shares held by Golden Eager, in view of the equity transfer agreement signed by Golden Eager Group and Sanpower Group, are possibly to be sold in future; however Sanpower Group may seek to buy some of the shares held by the State-owned Assets Supervision and Administration Commission of Nanjing Municipal Government”. 

　　Upon the comparison, Zhu Yicai, the actual controller of Yurun Group, the holding shareholder of Nanjing Central Emporium Co., Ltd. [27.89 0.07% Guba](600280.SH) (through the secondary market) acquired 11.15% shares of Nanjing Central Emporium Co., Ltd. held by the State-owned Assets Supervision and Administration Commission of Nanjing Municipal Government at the cost of RMB0.177 billion in June 2009; where the State-owned Assets Supervision and Administration Commission of Nanjing Municipal Government remained 5% shares only.

　　Now after Golden Eager Group quits, the State-owned Assets Supervision and Administration Commission of Nanjing Municipal Government that abandons to become the major shareholder would select the road of “withdrawal”; however Sanpower, holding the shares of 17%, needs to improve the share percentage to consolidate the control on the listed company; so it is the best choice to select to buy the shares held by the State-owned Assets Supervision and Administration Commission of Nanjing Municipal Government.

　　Except to hold the shares of Nanjing Cenbest, Sanpower holds 20.65% shares of a listed company of Hiteker. According to the plan of Sanpower Group, Hiteker is devoting to becoming a sales platform of IT products and consumer electronics and Nanjing Cenbest is devoting to becoming a sales platform of general merchandises. Both of which shall be complementary to each other, especially on the aspects of customers, products, customer cohesion, brand influence and etc. Sanpower Group is eager to achieve the concept of “grand general merchandise” through the “synergy effect”.