The Mills Case Analysis Report
1.What social issues is The Mills intended to address?
Revitalization of former cotton factories by offering support for start-ups in textile and
fashion with the aim of encouraging innovation and creating jobs while maintaining the
historical textile background that contributed to the growth of Hong Kong. The Mills tackles
the issue of unemployment that had characterized the youths in Hong Kong and affected
those who lost jobs when textile industries fell and change the historical perspective of the
city.
2.What corporate assets and expertise of Nan Fung are applied to The Mills?
Nan Fung invests capital amounting HKD $700 million on Mills and its expertise in property
development in the revitalization of Mills.
3.What business opportunities may The Mills generate for Nan Fung?
The Mills may generate several business opportunities for Nan Fung, especially through
Fabrica, the platform that hosts entrepreneurs. Nan Fung gets opportunities to invest in new
startups that not only revolutionize the future in design and technology but also generate
income. Nan Fung can identify financial ideas with the expectation of high returns. Nan Fung
can generate revenue in the form of rent by providing leases for retailers to operate in
Shopfloor.
4.What criteria shall Nan Fung use to evaluate The Mills’ performance?
How does the Mills’ overreliance on Nan Fung affect Nan Fung book of balance, and if the
situation persists, what will be the outcome in the future in regards to the Mills project?