(Yicai) July 2 -- Yuyuan Tourist Mart Group plans to sell a 30-story office block in northwestern Shanghai to Huirong Oriental Technology Development for CNY1.5 billion (USD206.3 million), following a decline in earnings at the specialty retailer last year, the unit of Chinese conglomerate Fosun International said yesterday.

Yuyuan intends to sell Building 1 in the Fojoy Plaza in Putuo district, which has a floor area of around 60,000 square meters, at an average price of CNY24,800 (USD3,411) per square meter, the Shanghai-based firm said.

The buyer, which was set up in May, is owned by the Henan Investment Group and deals in real estate brokerage, marketing, and exhibition services.

Yuyuan is trimming real estate assets to secure funds and boost liquidity to improve its financial performance, it said.

Just last week Yuyuan said it is selling its entire stake in Shinsetsu, which owns two subsidiaries, Tomamu Property and Resorts Tomamu, for at least JPY38 billion (USD235.1 million). Yuyuan bought the assets, which include three hotels and 29 ski slopes at the Tomamu Ski Resort in Hokkaido, nine years ago.

As the commercial developer of Yu Garden, a landmark tourist attraction in Shanghai, Yuyuan operates gold and jewelry retailing and has expanded into other consumer industries as part of Fosun’s strategic plan. Since Fosun became mired in a debt crisis in 2022, Yuyuan has also faced great pressure on its operations.

Net profit at Yuyuan tumbled 45 percent to CNY2 billion (USD275.2 million) last year, while revenue grew 16 percent to CNY58.1 billion (USD8.0 billion). In the first quarter, net profit sank 43 percent from a year earlier to CNY180 million (USD24.8 million). Revenue rose 13 percent to CNY17.2 billion.

Yuyuan’s share price [SHA: 600655] ended up 2.3 percent at CNY5.39 (USD0.74) today.

Editor: Kim Taylor