YUEXIU PROPERTY(HK:00123) Di Yi Cai Jing·2025-11-16 06:25Core Viewpoint - A "whistleblower letter" has revealed disputes between two leading real estate companies regarding their collaboration on the Beijing Puyue project, highlighting underlying tensions in the current new housing market [1][2][5] Group 1: Company Collaboration Issues - The whistleblower letter was sent by Beijing Xingding Real Estate Development Co., a subsidiary of China State Construction, to the Guangzhou State-owned Assets Supervision and Administration Commission, alleging that the partner company, Yuexiu, did not follow pricing rules and adjusted prices secretly [1][2] - The project involves a joint venture where China State Construction holds a 48.4% stake, while Yuexiu holds 17%, leading to potential conflicts in pricing and marketing strategies [3][4] - The two projects, Puyue and Zijing Chenyuan, have been marketed differently to avoid direct competition, but the pricing discrepancies have led to disputes [4][5] Group 2: Market Context and Competition - Both projects are located in a highly sought-after area, with Zijing Chenyuan achieving sales of 56.5 billion yuan and Puyue 45.65 billion yuan in October, making them top sellers in Beijing's new housing market [4][5] - The average transaction prices for Zijing Chenyuan and Puyue were approximately 9.85 million yuan and 9.96 million yuan per square meter, respectively, indicating a price gap of about 1,100 yuan per square meter [5][6] - The competitive landscape in the high-end real estate market is intensifying, with multiple luxury projects in the vicinity, increasing buyer options and complicating sales strategies [7][8] Group 3: Risks in Collaborative Development - The collaboration model between real estate companies has inherent risks, particularly in aligning interests when market conditions change, leading to potential conflicts over pricing and marketing [8][9] - The mismatch between operational control and ownership stakes can lead to disputes, as seen with Yuexiu's role as a smaller shareholder with operational authority [8][9] - The current market pressures may push companies to adopt aggressive strategies that could disrupt existing collaborative agreements [8][9] Group 4: Company Performance - China State Construction has been active in the Beijing market, ranking among the top three companies in terms of sales, with a reported sales figure of 166.1 billion yuan from January to October 2025 [9] - Yuexiu has also shown significant growth in the Beijing market, with a contract sales amount of 197.2 billion yuan in the first half of 2025, reflecting a year-on-year increase of 255.1% [9]