Thanakorn Seriburi, chairman of Shanghai Kinghill Co Ltd, said last week that the company, set up to develop shopping centres in China, would start showing a profit next year.

Initiated in 2000, the US$450-million (Bt17-billion) property commenced commercial operations in 2002 but got off to a slow start in the aftermath of regional crises.

The megamall was also such a novel concept at that time that promotional drives were needed to build awareness.

"It was too soon to predict anything in the three years since we started operating the mall. Many retailers may not have been convinced of the project's drawing power," he said.

But now Pudong, the special financial district where the mall is located, has grown tremendously, attracting many multinational companies and investors.

About 80,000 shoppers visit the mall per day compared with 30,000-40,000 in the beginning. The complex is now fully occupied, not only with a variety of name brands, five-star restaurants and a Lotus Supercentre, but also with entertainment venues such as an ice-skating rink.

The company is focusing on professional management by bringing in more experts, including filling the president's and CEO's positions from outside.

"We enjoy better business now with high-class brands desiring a presence in the mall," he said.

CP's interests in China, spanning agriculture, retailing, motorcycles, heavy-equipment dealerships and shopping malls, generate revenues of $6 billion per year.

Thanakorn, who is also chairman of ECI Group, CP's holding company for all its activities in China, said its retail business, the Lotus Supercentre chain, was expanding rapidly, reaching 74 branches ranging from small stores with 5,000 square metres of space to big units with up to 20,000 square metres.

"It's an interesting business with each Lotus ringing up an average of 500,000 yuan or Bt2.5 million per day in sales," he said.

ECI is planning to start a retail-management college in China, designed to provide a steady supply of management and staff to ensure smooth operations at Lotus.

The company is considering asking some foreign management institutions to draw up the curriculum and is also surveying suitable areas to establish the college. Thanakorn has not revealed the expected cost of the project.

Another key business for ECI is motorcycle-manufacturing. Total production capacity is projected to hit one million units this year, from 800,000 last year, following the Chinese government's decision to reduce excise from 10 per cent to 3 per cent this year. The lower rate strengthens the company's competitiveness against local makers, which evade excise.

The company recently joined hands with Caterpillar to sell trucks, engines, tractors, forklifts and other industrial vehicles, with a target of 900 units this year.

The new venture is seen as having a bright future since China has implemented a policy of increasing agricultural crops.

Food both for people and for livestock is one of the company's core businesses. It operates food-processing plants for products such as sausages and meatballs as well as feed-meal plants in many provinces.

Thanakorn said China's two-digit economic growth had caught the attention of investors from around the world. Many Thai investors, such as liquor tycoon Charoen Siriwadhanabhakdi, are interested in establishing a foothold in China in both the liquor and property sectors.

Achara Pongvutitham

The Nation