Why Has Xinhua Bookstore Not Gone Out of Business?

Xinhua Bookstore is a state-supported basic education facility and a hidden monopoly. It essentially holds exclusive rights to the distribution and wholesale of domestic educational supplementary materials. In addition, early urban planning allocated prime land to it (mostly in golden locations), and it is largely exempt from rent payments, allowing it to generate over a billion yuan in annual profit.

Xinhua Bookstore: Is It Actually Profitable?