CHINASOUTHCITY's subsidiary has entered into a share transfer agreement with Harbin Guangmai Real Estate
CHINASOUTHCITY signed a share transfer agreement with Harbin Guangmai Real Estate to sell 100% equity of Project Company A and Project Company B, with a total transaction amount of RMB 217 million. Asset A held by Project Company A is located in Harbin, Heilongjiang Province, with a planned land area of 13,000 square meters; Asset B held by Project Company B is also located in Harbin, with a planned land area of 118,000 square meters. The proceeds from the sale will be used to repay financing costs and for general operating purposes
According to the announcement from CHINASOUTHCITY (01668), on August 11, 2025, the seller (Harbin CHINASOUTHCITY Co., Ltd., an indirect wholly-owned subsidiary of the company) entered into Equity Transfer Agreement A with the buyer (Harbin Guangmai Real Estate Brokerage Co., Ltd.). The seller will transfer 100% equity of Project Company A (Heilongjiang Wanbang Jiyie Real Estate Development Co., Ltd.) to the buyer (Project Company A will hold Asset A), with a purchase price of RMB 72 million.
On September 19, 2025, the seller entered into Equity Transfer Agreement B with the buyer. The seller will transfer 100% equity of Project Company B (Heilongjiang Dingrong Real Estate Development Co., Ltd.) to the buyer (Project Company B will hold Asset B), with a purchase price of RMB 145 million.
"Asset A" refers to Plot 01 and Plot 03, known as the 1668 Industrial Park Project C22 Plot, located in Tuanjie Town, Daowai District, Harbin City, Heilongjiang Province, China, with a planned land area of 13,000 square meters, a total construction area of 8,700 square meters, and a gross floor area of 8,200 square meters; "Asset B" refers to the asset named Boutique D District Project, located in Tuanjie Town, Daowai District, Harbin City, Heilongjiang Province, China, with a planned land area of 118,000 square meters, a total construction area of 151,700 square meters, and a gross floor area of 149,900 square meters.
The consideration for the transfer will be used to repay the financing costs and advances incurred by the seller in developing these assets, and the remaining funds will be used for general operational purposes of the group's domestic subsidiaries.
After making inquiries with relevant parties and based on the information provided to the liquidator by those parties, the liquidator believes that the transfer is consistent with the seller's business, namely the development of commercial and industrial properties in Harbin, China. In this regard, the liquidator learned from relevant parties that the sale of these properties will provide critical cash flow for the group's domestic subsidiaries to continue their domestic business and operations; and the terms of the equity transfer agreements are established on general commercial terms, are fair and reasonable, and are in the company's interest
