融创压哨欲“赎回” 华发回应“正协商”

Core Viewpoint - The ongoing negotiations between Huafa Group and Sunac regarding the buyback of equity in the Shenzhen Qianhai Ice and Snow World project are crucial, with both parties seeking to redefine terms due to changing circumstances [1][2][4]. Group 1: Buyback Agreement and Conditions - In January 2023, Huafa Group's subsidiary acquired 51% of Shenzhen Ronghua Investment Co., Ltd. from Sunac for 3.58 billion yuan, allowing Sunac a buyback option until November 23, 2025 [2]. - On November 21, 2025, Sunac notified Huafa of its intention to exercise the buyback right but requested discussions on the buyback method, price, and timing due to current conditions [2][3]. - Huafa's announcement stated that Sunac must meet specific conditions within 30 working days after notifying the buyback, including obtaining financing institution approval or providing loans to clear debts [3][7]. Group 2: Financial Context and Asset Transformation - Sunac's financial situation has improved following the approval of a $9.6 billion debt restructuring plan, enabling it to reassess valuable assets [5]. - The Shenzhen Qianhai Ice and Snow World project has transitioned from a liability to a profitable asset, with over 400,000 visitors in its first month and projected annual revenues of approximately 650 million yuan and net profits of 130 million yuan [5]. - Huafa has also made significant cash recoveries from the project, including the sale of commercial land for 4.405 billion yuan and over 7 billion yuan from the talent housing sector [5]. Group 3: Negotiation Dynamics and Challenges - The main point of contention in negotiations is the valuation of the project and the associated risk costs, with Sunac advocating for a revaluation based on asset appreciation and Huafa emphasizing its investment and risk during the project's stagnation [6]. - Even if an agreement on price is reached, Sunac faces challenges in meeting the financing conditions stipulated in the original agreement, which may complicate the buyback process [7][8]. - Huafa's financial performance has been under pressure, with a 64% increase in revenue to 51.75 billion yuan but a 92.3% drop in net profit to 102 million yuan, partly due to asset impairment provisions related to the project [8].