Shandong Retail Leader Ginza Shares Made Only 67 Million In The First Half Of The Year, And Was Prosecuted For 60 Million In Dongying.

The Ginza group Limited by Share Ltd (hereinafter referred to as "Ginza shares") disclosed the first half of 2019 performance report in the evening of August 14th. During the reporting period, the company achieved operating income of 6 billion 402 million yuan, down 5.28% from the same period last year, of which the business income was 6 billion 369 million yuan, down 5.71% from the same period last year; the real estate business income was 33 million 524 thousand and 100 yuan, an increase of 28 million 466 thousand and 400 yuan over the same period last year, mainly due to the fact that the number of sales shops was more than that of the same period last year. In the first half of the year, the net profit attributable to the owners of the parent company was 67 million 841 thousand and 600 yuan, down 4.63% from the same period last year. The reason for the decrease in net profit attributable to the parent company owners is mainly due to the effects of non recurring gains and losses (such as litigation compensation, fines and other expenses). Excluding this effect, the net profit of the company to deduct non recurring gains and losses attributable to the owners of the parent company is 59 million 144 thousand and 300 yuan, an increase of 2.51% over the same period last year.

Reporters read the announcement that:

1, Ginza shares announced in May 23rd that the company signed a lease contract with Weihai Leyuan Real Estate Co., Ltd. (hereinafter referred to as "Weihai Yue Yuan"). In September 11, 2017, the company received the summons of the intermediate people's Court of Weihai municipality of Shandong province [(2017) Lu 10 early Republic of China No. 342]. Weihai Yueyuan sued the company in the Weihai intermediate people's Court of Shandong for rent contract disputes, requiring the company to pay 52 million 856 thousand and 100 yuan for breach of contract, and to pay 122 million 681 thousand and 800 yuan for economic losses. After the case was put on file, the intermediate people's Court of Weihai, Shandong province applied the ordinary procedure according to law, opened the court for trial, and issued the "civil judgment of the intermediate people's Court of Weihai City, Shandong province".

The judgment indicates that the company has paid a deposit of 2 million yuan for Weihai Yuyuan, and should be confiscated as a part of the liquidated damages by the Weihai Yue Yuan when the company fundamentally breach the contract. After deducting the 2 million yuan, the company should pay 50 million 856 thousand and 100 yuan for the Happy Source Co default. The company appealed to the Shandong Higher People's court through the intermediate people's Court of Weihai, Shandong (first instance court), and prepaid the appeal fee in January 25, 2019.

In May 20th, the company received the Shandong civil court (2019) Lu Min 229 No. "civil judgment". The company's appeal request was partially established, and the company should pay 42 million 284 thousand and 900 yuan to the Happy Source Co for breach of contract damages, deducting the 2 million yuan deposit paid by the company to the Happy Source Co, and the amount of default payment should be 40 million 284 thousand and 900 yuan. The main contents of the decision are as follows:

(1) to cancel second civil judgments of 342 intermediate people's courts (2017) Lu 10 and early Republic of China in Weihai, Shandong, that is, to dismiss other litigation claims of Weihai Lok yuan real estate company limited.

(two) change the Weihai intermediate people's Court of Shandong province (2017) Lu 10 civil law 342 civil judgment. The first item is the Ginza group Limited by Share Ltd within thirty days from the date of the judgment's effective date, paying 40 million 284 thousand and 900 yuan of the penalty fee of Weihai Lok yuan real estate Co., Ltd.

(three) dismiss other litigation claims of Weihai Lok yuan real estate company limited.

The case acceptance fee of the second instance is 215671 yuan from the Ginza group Limited by Share Ltd.

2, Ginza shares announced in July 24th that Dongying Changan Real Estate Development Co., Ltd. (hereinafter referred to as "Dongying Changan") has signed a lease agreement with the wholly owned subsidiary of Dongying Ginza mall Limited (hereinafter referred to as "Dongying Ginza"). It is agreed that Dongying Changan will invest in the construction of commercial property at 256 West Fourth Road, Dongying, and rent it to Dongying Dongying, with an area of 38197 square meters and a lease term of 20 years. Due to major changes in the market environment, the two sides have failed to reach agreement on matters related to the original lease contract and related treatment. Changan, Dongying, considers Dongying Ginza to breach its contract, requiring unilateral termination of the lease contract and Dongying Ginza to assume corresponding responsibilities. Therefore, it sued Dongying Dongying for the Dongying intermediate people's Court of Shandong province.

1, request to lift the lease contract between Dongying Ginza and Dongying Changan.

2, the Dongying Ginza was ordered to pay 30000000 yuan for breach of contract.

3, the Dongying Ginza has been ordered to pay 5833300 yuan from December 5, 2018 to July 7, 2019, and 84300 yuan for overdue interest.

4, order Dongying Ginza to compensate for Dongying Changan rental housing idle loss of 10000000 yuan;

5, order Dongying Ginza to compensate Dongying Changan in accordance with the requirements of Dongying Ginza for rental housing reconstruction and input cost of 15096098.56 yuan;

6. All litigation costs in this case are borne by the Ginza of Dongying.

3, Ginza shares have signed the lease contract with the Shandong high star Cci Capital Ltd (hereinafter referred to as "high-power star"). In January 13, 2018, Gao Li Shi Da sent a cancellation letter to the Ginza group, unilaterally terminating the contract. In accordance with the contract signed by both parties, any party unilaterally cancelling the contract shall pay a penalty of 20 million yuan to the other party. After the case was put on file, the people's Court of Ji'nan City, Shandong Province, in accordance with the law, applied the ordinary procedure, opened the court for trial, and issued the "civil judgment of the people's Court of Ji'nan City, Shandong province" [(2018) Lu 0103 early Republic of China No. 3149]. The decision of Gao Li Shi Da company should pay the company a default payment of 20 million yuan, and the case acceptance fee is 141800 yuan, which is borne by Gao Li Shi Da company. Gao Li Shi Da company appealed to the intermediate people's Court of Ji'nan, Shandong, for failing to accept the first instance decision. After the case was put into effect in April 17, 2019, the Ji'nan intermediate people's court constituted a collegial panel in accordance with the law.

In June 6, 2019, the company received the civil judgment of Lu 01 min 3469, Ji'nan intermediate people's Court of Shandong province (2019), and rejected the appeal of Gao Li Shi Da company and upheld the original judgment. The cost of accepting cases for second instance is 141800 yuan borne by Gao Li Shi Da company. This judgment is final.

According to the financial report, in the first half of 2019, Ginza shares opened 2 new stores in Linyi and Tai'an, and 2 shopping center output management projects (Ji'nan Wan Hong square and Lu Shang city square in Linshu), closed Linqu Huaxing Dongcheng store, Linqu Huaxing paper shop and Ji'nan Ming Hu shop 3 stores. By the end of the reporting period, there were a total of 177 retail stores owned and managed by the company. Among them, the company had 130 stores (24 stores in Huaxing shopping center, Linqu, Weifang), covering 12 cities in Shandong and Hebei province. At the same time, the company is entrusted with the management of the major shareholder of Shandong Commercial Group Co., Ltd., a subsidiary of the Shandong commercial Ginza, Limited by Share Ltd, which owns 47 unlisted stores.

By the end of the 2 quarter of 2019, the Daming Lake store, located on the first floor of No. 789 Ming Hu East Road, Lixia District, Ji'nan, has been closed, with a floor area of 9 thousand and 200 square meters and a large comprehensive supermarket in Ji'nan. In addition, Weifang Huaxing, a subsidiary of the company in Linqu, has closed two supermarket stores, with a floor area of 0.14 and 1 thousand and 300 square meters respectively.

Public information shows that Ginza shares are the leading retail outlets in Shandong, and deep ploughs in the province. The location of "department stores + supermarkets + shopping centers" is clear. The company is mainly engaged in commodity retail business, department stores, large general supermarkets and shopping centers. The three business formats are differentiated and coordinated. The company opened several stores in Shandong province earlier, and the store layout radiated 12 cities in the province. The company extended the layout of Shandong while taking into account the surrounding areas outside the province. At present, it has mastered many excellent store resources in the core areas of Hebei, Shijiazhuang, Baoding and Zhangjiakou, and has relatively obvious regional competitive advantages.

After years of development, Ginza Ginza has gained a high reputation and influence, and has maintained a competitive advantage in the same industry in Shandong. "Buying real goods, going to Ginza", "shopping and enjoying life" have become the general consensus of consumers, and have won the love and trust of consumers. While adhering to the mission of "serving the overall situation of Shandong and serving the masses", the Ginza people shoulder more social responsibilities while winning their own development, win good brand image and better people's reputation, and lay a solid foundation for Ginza's future development.