Core Viewpoint - Li Ka-shing's business empire is undergoing a significant withdrawal from the mainland Chinese real estate market, with a notable shift in asset allocation towards Europe and a drastic reduction in holdings in Hong Kong and mainland China [6][8][24]. Group 1: Asset Sales and Market Trends - Li Ka-shing's Cheung Kong Property Holdings has recently conducted a "fire sale" of over 400 residential units in Guangdong, with prices dropping significantly, such as units in Huizhou selling for as low as 400,000 HKD [7][11]. - The revenue contribution from mainland China has shrunk to 5%, while Hong Kong accounts for only 7%, and Europe now contributes 50% of the revenue [7][29]. - The average price of properties in Dongguan has plummeted from 44,000 HKD per square meter in 2023 to 18,000 HKD per square meter, marking a 64.8% decrease [13][12]. Group 2: Historical Context and Business Strategy - Li Ka-shing's strategy has historically involved acquiring land at low prices and developing it over long periods, capitalizing on the maturation of surrounding infrastructure [18][19]. - The shift in market dynamics and regulatory policies since 2015 has rendered his traditional business model less effective, prompting a series of asset sales starting in 2013 [23][24]. - Notable past transactions include the sale of core assets in major cities, such as the Guangzhou West City Plaza for 2.6 billion HKD and the Shanghai Lujiazui Oriental Plaza for approximately 7 billion HKD [24][26]. Group 3: Financial Performance and Future Outlook - As of mid-2025, Cheung Kong Property Holdings reported a significant drop in net profit to 6.302 billion HKD, a nearly 27% decline year-on-year, primarily due to substantial reductions in property valuations [30]. - The company's land reserves have decreased from over 10 million square meters at their peak to approximately 622,000 square meters, with 86% located in mainland China [29][30]. - Li Ka-shing's family has sold over 250 billion HKD worth of assets from mainland China and Hong Kong between 2013 and 2017, indicating a strategic pivot away from these markets [27][28].

Core Viewpoint - The Nancheng Duhui project, once backed by Li Ka-shing, has faced significant challenges, including over 5,000 unsold residential units and substantial tax debts totaling nearly 28 billion yuan, leading to a complex situation involving multiple stakeholders [1][4][10]. Group 1: Project Background - The Nancheng Duhui project was initiated by Cheung Kong Holdings in 2004, with an investment of 2.135 billion yuan and a floor price of 1,030 yuan per square meter [2]. - The project has undergone multiple ownership changes since July 2020, involving Cheung Kong, Yuzhou Group, and Chengdu Ruizhuo, creating a complicated relationship among the parties [1][2]. Group 2: Financial Issues - Shunhong Real Estate has accumulated tax debts exceeding 28 billion yuan, including over 19 billion yuan in land value-added tax and additional penalties for late payments [4][5][6]. - The company also owes approximately 1 to 2 billion yuan for infrastructure construction costs that the Chengdu High-tech Zone has already advanced [7]. Group 3: Operational Challenges - The project has been effectively stalled due to various factors, including the pandemic, legal disputes, and asset seizures, leading to a suspension of operations from April 1 to June 30, 2025 [3][10]. - Shunhong Real Estate has been involved in numerous legal cases, with 467 cases recorded, of which 348 are as defendants, totaling 3.816 billion yuan in claims [11]. Group 4: Stakeholder Conflicts - The relationship between Yuzhou Group and Chengdu Ruizhuo deteriorated, leading to accusations of financial misconduct, including the illegal seizure of company funds and documents [10][11]. - The ongoing disputes among Cheung Kong, Yuzhou Group, and Chengdu Ruizhuo have created a "three-country kill" scenario, complicating the resolution of the project's financial and operational issues [12].

Core Viewpoint - The Chengdu Nancheng Duhui project, previously owned by Li Ka-shing's Cheung Kong Group, has faced significant delays and legal issues, with over 5,000 residential units still under construction and a recent announcement of 1,100 units set for sale without completed renovations [1][2][4]. Group 1: Project Background - The Nancheng Duhui project was acquired by Cheung Kong in 2004 for approximately 2.135 billion yuan, with initial development slow to start [2]. - By 2020, only six of the planned eight phases had been developed, with the average selling price of residential units reaching 24,000 yuan per square meter [2]. - Cheung Kong sold the project in 2020 for about 7.847 billion yuan, despite significant unsold inventory remaining [2][3]. Group 2: Financial and Legal Issues - The project has been embroiled in debt disputes, with Cheung Kong taking legal action against RZ Company and Shunhong Chengdu for unpaid debts totaling approximately 3.8 billion yuan [7]. - RZ Company, which is partially owned by Yuzhou Group, has faced multiple financial challenges, including loans from various entities that have not been repaid [7][8]. - The project has been subject to court-ordered asset seizures, with the Chengdu High-tech Zone's land use rights and buildings being frozen until June 2026 [8]. Group 3: Current Developments - Recent reports indicate that 1,100 units are set to be sold, but suppliers like Sichuan Yijia Construction have not received contracts for renovation work, raising concerns about project viability [1][5]. - A new agreement involving multiple parties aims to facilitate the project's debt restructuring and construction resumption, although the legitimacy of this agreement is questioned by some stakeholders [9][10]. - Legal representatives have warned suppliers to verify the authenticity of agreements before making financial commitments, highlighting ongoing uncertainties in the project's management [12].