(Yicai) June 27 -- Shanghai Yuyuan Tourist Mart Group plans to sell a ski resort in Hokkaido, Japan for JPY38 billion (USD237 million), following a decline in earnings at the specialty retailer since last year.

Yuyuan will sell its entire stake in Shinsetsu, which owns two subsidiaries, Tomamu Property and Resorts Tomamu, whose main assets are three hotels and 29 ski slopes at the Tomamu Ski Resort, the unit of Chinese conglomerate Fosun International announced yesterday. 

The Shanghai-based company did not say if any potential buyers had been lined up.

Yuyuan is trimming assets to integrate its resources into core industries with high potential, high growth, and high profitability, with a focus on household consumption, it said.

Shinsetsu had a net profit of JPY611 million (USD3.8 million) on revenue of JPY15.6 billion last year, according to the announcement. It also had total assets of JPY43.8 billion and net assets of JPY1.3 billion at the end of December.

Yuyuan acquired Resorts Tomamu for JPY18.4 billion in December 2015.

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 of this year, net profit sank 43 percent from a year earlier to CNY180 million (USD24.8 million). Revenue rose 13 percent to CNY17.2 billion.

Editor: Tom Litting