Nanning Department Store Developers default

Nanning department store announced today that the Nanning standard XTEP Real Estate Development Co., Ltd. (hereinafter referred to as XTEP), on the grounds of the delay in payment of the purchase of the Nanning department store, called for the lifting of the commercial housing sales contract and the supplementary agreement signed with the company to purchase the commercial property in the A district and B District of the world trade center, and required the company to withdraw from the property and restore it to its original state.

In this regard, Nanning department store said that after the two sides entered into force, company A total of 673 million yuan has been paid for the purchase price, and the purchase price of the second phase is 76 million 762 thousand and 100 yuan, which has not been paid because of the failure to meet the payment terms and the existence of other breach of contract by XTEP.

Nanning department store's "breach of contract" is an indicator that XTEP failed to run the property certificate in accordance with the contract. According to the Nanning department store, XTEP should make the property certificate for the company by May 2012. But so far, it has not yet been completed.

In addition, Nanning department store also said that Purchase contract It was agreed that XTEP should put the parking building into operation in March 2012, but it was not until April 2014 that the parking lot passed the inspection and put into operation. Moreover, there are still some engineering and equipment facilities that XTEP has not yet reached the design standard after rectification.

Nanning department store legal consultant Beijing Dacheng (Nanning) law firm lawyers believe that the two "housing sales contracts" and supplementary agreements are legal and effective. The listed companies have paid the purchase amount on schedule as agreed in the contract, and the purchase property has been delivered to use. If XTEP violates the same agreement, it should bear the corresponding liability for breach of contract. XTEP does not have the right to request the lifting of the sale and purchase relationship. There is no legal and factual basis for the proposal to terminate the sale and purchase relationship.

The project has invested more than 700 million yuan.

Despite the support of lawyers, Nanning department stores still prefer the "negotiated solution". Nanning department store said that the company will continue to negotiate with XTEP, and strive to resolve it through consultation. If no agreement can be reached between the two parties, the company will bring a lawsuit to the court.

As a matter of fact, the Nanning shopping center has been losing money since it was put into operation.

Statistics show that in December 2010, Nanning department store bought a total of 6095.85 square meters of World Trade Plaza West City Square with some 110 million yuan to standard XTEP. Since then, the Nanning department store issued a fixed increase plan in February 2011. The company intends to issue shares of not more than 706 million yuan for the purchase of commercial real estate fees, decoration fees, equipment purchase fees, pre investment and unforeseen expenses of Xicheng square. In March 30th of the same year, the company announced that it purchased 640 million square meters of real estate with a total construction area of 49 thousand and 900 square meters from XTEP.

Reporters noted that the Nanning department store intends to build the new world department store through the above investment. According to the company's original forecast, the new store can officially achieve its business income of 800 million yuan (10 years average) and net profit of 69 million yuan.

However, due to the slow growth of the domestic consumer goods market, the new world store did not show strong profitability after its opening in late 2012. In 2013, Nanjing department store, a wholly-owned subsidiary of Guangxi's new world business, realized 147 million of its operating income and a net profit loss of 11 million 151 thousand and 800 yuan. In the first half of this year, the company's operating income was 80 million 406 thousand yuan, and its net profit was 5 million 851 thousand and 400 yuan.