Huafa Properties(SH:600325) Zhong Guo Jing Ying Bao·2025-07-29 23:48Core Viewpoint - Huafa Co., Ltd. plans to dispose of seven commercial land parcels in the Qianhai Ice and Snow World project for 4.405 billion yuan, aiming to accelerate asset revitalization and mitigate liquidity risks [1][5]. Group 1: Transaction Details - The seven commercial land parcels cover approximately 70,500 square meters and are currently undeveloped [1]. - The transaction price of 4.405 billion yuan represents a discount of about 25% compared to the book value of approximately 5.841 billion yuan [5][6]. - The estimated loss from this transaction is expected to exceed 50% of the company's audited net profit for 2024 [1][6]. Group 2: Project Background - The Qianhai Ice and Snow World project is a key development for Huafa, with a total area of about 430,000 square meters and a total investment exceeding 10 billion yuan [1]. - The project includes a talent housing community of 300,000 square meters and is expected to begin trial operations in the fourth quarter of 2025 [1]. Group 3: Market Context - The commercial real estate market in Shenzhen is experiencing a downturn, particularly in the office sector, leading to a decline in land value [6]. - The government’s land recovery initiative is seen as a necessary measure to stabilize asset values amid prolonged non-development and corporate incapacity to develop [2][6]. Group 4: Financial Implications - The transaction is expected to enhance the company's liquidity, allowing for better cash flow management and investment capabilities [6]. - Huafa's revenue is projected to decline by 16.84% in 2024, with net profit expected to drop by 48.24% [6][7].