By XU Shiqi, XIA Tian
The Eagle Run Plaza, once the largest office building in Asia, faces a changing landscape. The developer of the building, Beijing New Hope, is part of the Huang family industrial conglomerate. Huang Yu, Huang Guangyu’s nephew, is the majority shareholder. Once reckoned to be China’s richest man, Huang Guangyu, is the former Chairman of Gome Group.
Eagle Run has two towers, A and B. Tower A is open to renters, while Tower B - also open to renters - houses Gome's offices, or what’s left of them. Many tenants are planning to move out due to concerns that the former electronics powerhouse may default.
Most people in Tower B today are not Gome’s employees. Gome's office floors are now vacant, including the 23rd floor (Electrical Appliances), the 16th floor (Overseas Shopping), and the 17th and 19th floors (Retail). Only on the 18th and the 27th show signs of life. A few employees wearing Gome uniforms wander disconsolately about. The 27th floor is for live streaming and e-commerce. Huang Guangyu's office is on the top floor of the building, the 36th floor, but the elevator is no longer reaching there and the stairway to the 36th floor is blocked.
Few customers and salespersons are mill about in a Gome store in Beijing's Chaoyang District. Home delivery and next-day delivery services on the app still seem available.
According to Gome Retails's financial report, as of June 30, its assets are valued at 6.3 billion yuan (about US$87 million), with an additional 683 million yuan of property under construction. Revenue from property reached 950 million yuan.
At the end of the third quarter, the company's debt ratio was 78.3 percent, with total assets of 11.2 billion yuan and loans of 7.6 billion yuan and 6 billion yuan due within a year. The company has 2.4 billion yuan in cash.
