Sold out of Eslite Spectrum @ an average price of TWD 75 per share. Generally speaking a very disappointing investment because of my mistake in judgement.

In Jun 2020, Eslite announced the closure of Shenzhen mall due to an inability to reach a rental agreement with CR Land. COVID-19 probably accelerated the already sub-par performance of SZ Eslite.

The further deterioration of the HK business also compounded Eslite’s problems both due to social unrest and COVID-19.

TW business continues to have limited LfL growth.

I believe the key underlying issue is due to the core Eslite business model of bookstore + shopping is just not that strong. My mistake has been to overestimate the strength of this business model.

My original hypothesis depends on Eslite bookstore ability to continuously generate traffic which can be monetised through other merchants. However, traffic generated by the bookstore is neither high in volume nor valuable enough.

I hope Eslite would continue to do well as it plays an important role in spreading art and culture in Taiwan.