Nan Fang Du Shi Bao·2025-12-11 23:11Core Viewpoint - The integration of China Metallurgical Group Corporation's (China Metallurgy) subsidiary, China Metallurgical Real Estate (CMRE), with Minmetals Development is confirmed, alongside Minmetals' accelerated privatization process [1][5] Group 1: Transaction Details - China Metallurgy announced the sale of 100% equity in CMRE and related debts to Minmetals Development for a total transaction value of 31.236 billion RMB [1] - Additional sales include 100% stakes in several subsidiaries and a 67.02% stake in another subsidiary, totaling 29.439 billion RMB, bringing the overall transaction value to over 60.676 billion RMB [1] - The funds from this transaction will primarily support China Metallurgy's diversified business system, focusing on its core metallurgy business [1][4] Group 2: Financial Performance of CMRE - CMRE ranked 35th among China's top 100 real estate companies but has faced significant financial challenges, reporting a loss of 4.85 billion RMB in 2024 [3] - For the first half of 2025, CMRE reported revenue of 3.192 billion RMB, a 43.85% increase year-on-year, but still incurred a total profit loss of 1.834 billion RMB [3] - The losses are attributed to market adjustments, high project development costs, and heavy debt burdens [3] Group 3: Minmetals Development's Situation - Minmetals Development is undergoing privatization, with a proposed buyout price of 1.000 HKD per share, representing a premium of approximately 185.71% over the unaffected closing price [5] - Despite the high premium, Minmetals Development reported a revenue of 1.976 billion HKD and a net loss of 580 million HKD in the first half of the year [5] - The company aims to enhance operational flexibility and align its strategies with the core business of Minmetals Group amid a challenging real estate market [5][6]