Zheng Quan Zhi Xing·2025-07-01 16:41Core Viewpoint - Guangzhou Yuexiu Capital Holdings Group Co., Ltd. plans to increase its stake in Yuexiu Property through its subsidiary Guangzhou Asset, utilizing up to 204.22 million RMB of its own funds via the Hong Kong Stock Connect, with the authorization period lasting until May 30, 2026 [1][2][4]. Summary by Sections 1. Transaction Overview - Guangzhou Asset will use no more than 204.22 million RMB of its own funds to purchase shares of Yuexiu Property (stock code: 00123.HK) in the secondary market through the Hong Kong Stock Connect [1][2]. - The transaction is classified as a related party transaction and does not require shareholder meeting approval as it falls within the board's decision-making authority [1][5]. 2. Background of the Transaction - The transaction is part of a strategic shift for Guangzhou Asset, which aims to leverage its experience in managing non-performing assets to support the healthy development of the real estate sector [2][12]. - Yuexiu Property achieved a contract sales volume of 114.5 billion RMB in the previous year, ranking 8th in the industry [2]. 3. Transaction Plan - Guangzhou Asset intends to utilize 20.422 million RMB from the previously authorized 55.65 million RMB to continue increasing its stake in Yuexiu Property, with a limit of 2% of the total shares during the authorization period [4][12]. - The authorization period for this transaction is set for 12 months from the date of board approval [4]. 4. Related Party Transaction Details - The transaction involves related parties, as Yuexiu Group, the controlling shareholder of the company, holds a 45.34% stake in Yuexiu Property [5][11]. - The total amount of related party transactions in the past 12 months has not exceeded 5% of the company's latest audited net assets [5][14]. 5. Financial Data of Related Parties - As of December 31, 2024, Yuexiu Group reported total assets of 107.85 billion RMB and net assets of 17.72 billion RMB [8]. - Hong Kong Yueqi, a wholly-owned subsidiary of Yuexiu Group, had total assets of 77.18 billion RMB and net assets of 14.17 billion RMB as of December 31, 2024 [9]. 6. Purpose and Impact of the Transaction - The increase in stake is expected to enhance collaboration between Guangzhou Asset and Yuexiu Property, focusing on real estate restructuring and asset management [12][13]. - The investment is anticipated to yield positive returns based on the equity method of accounting [13]. 7. Independent Director's Opinion - The independent directors have approved the transaction, emphasizing its alignment with Guangzhou Asset's strategic direction and the legality and fairness of the transaction [16].