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With the fact that pandemic containment remains critical, coupled with triple pressure from the shrink of demand, reduction of supply and the expectation of weaker growth, it is expected that many uncertainties will continue to exist in the recovery of the Chinese consumer market in 2022. However, with the implementation of more precise and effective pandemic containment measures in the future, and under the guidance of the macro policy of “Prioritizing stability while pursuing progress, driving the steady qualitative growth and rational quantitative growth of the economy (穩字當頭、穩中求進,推動經濟實現質的穩步提升和量的合理增長)”, it is estimated that the market will be able to strike a better balance between pandemic prevention and control and economic development.

Driven by the change in global consumption concept and pattern, retail enterprises will further implement innovative transformation and accelerate the integrated development of “Internet+” and physical retail business. Amidst the new market situation, shopping experience will be reshaped constantly and making timely and precise responses and adjustments will be the key to success of the retail enterprises.

In 2022, with the launch of the outlets projects in Qingdao and Xiamen, the strategic goal of the layout plan of business expansion based on self-ownership mode will then be basically fulfilled, thus consolidating the economies of scale of the Group in the industry. Upholding the corporate vision of becoming the “most valuable comprehensive outlets operator in China”, the Group will gain keen insights into the new demand and changes of consumer in pursuit of value increase for consumers and value creation for tenants. It will also adjust and optimize the operation philosophy, strengthen the empowering ability of the headquarters office, continue to enhance its capability in lean operation and digital operation and implement the “store-oriented policy” in operation in a more scientific and effective manner. Furthermore, the Group will further consolidate the foundation of project operation and continue to increase the flexibility and resilience of sales so as to improve the results of projects on an ongoing basis through measures such as increase revenue and reduce costs, control over expenses and enhance efficiency. Meanwhile, the Group will fully develop the two major system capabilities of business management and asset management with comprehensive outlets operation as its core. In addition, by active brand development and output management and promoting the orderly asset withdrawal from mature projects proactively, the Group will make persistent efforts in promoting the transformation and upgrade as planned in the corporate development strategy, and continue to consolidate and enhance the connotation of the “most valuable comprehensive outlets operator in China” with a view to maximizing the value for the shareholders!

Strategic Map of Capital Grand

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