Core Viewpoint - Huafa Co., Ltd. announced that its wholly-owned subsidiary, Zhuhai Huafa Real Estate Development Co., Ltd., acquired a 51% stake in Shenzhen Ronghua Investment Co., Ltd. from Sunac Cultural Tourism Group in January 2023 for 3.58 billion yuan, with a buyback option for Sunac by November 2025 [1][3] Group 1: Acquisition Details - The acquisition was completed in January 2023, allowing Huafa to gain 100% ownership of the project after the purchase [3] - The project, located in Bao'an District, Shenzhen, is known as the "Shenzhen Ice and Snow Cultural Tourism City," which includes the world's largest indoor ski resort and covers approximately 430,000 square meters [4] Group 2: Buyback Conditions - On November 21, 2025, Huafa received a notice from Sunac indicating its intention to exercise the buyback option but requested a renegotiation of the buyback terms, including method, timing, and price [1][2] - The buyback conditions require Sunac to secure financing approval or provide loans to the project company to clear existing debts within 30 working days after confirming the buyback [1] Group 3: Financial Implications - The uncertainty surrounding the buyback could disrupt Huafa's cash flow plans, with the original buyback price expected to be no less than 4 billion yuan, considering the acquisition cost and financing expenses [5] - Huafa's financial performance showed a revenue increase of 64% year-on-year to 51.75 billion yuan in the first three quarters of 2025, but net profit dropped by 92.3% to 102 million yuan [5]