Core Viewpoint - South China City Holdings Limited is accelerating the divestment of its domestic assets amid its liquidation process, having sold two real estate projects in Harbin for a total of 217 million yuan [1][3]. Asset Sale Details - The buyer, Harbin Guangmai Real Estate Agency Co., Ltd., acquired 100% equity of two project companies holding the "1668 Industrial Park C22 Plot" and "Boutique D District Project" [3]. - The sale price includes 72 million yuan for Asset A and 145 million yuan for Asset B, with the latter involving a three-phase payment structure [4][6]. - The total area for Asset A is 13,000 square meters with a total construction area of 8,700 square meters, while Asset B has a planned area of 118,000 square meters and a total construction area of 151,700 square meters [6]. Financial Implications - The transaction is expected to result in a loss exceeding 660 million yuan, as the book value of the two projects is approximately 879 million yuan [8]. - The proceeds from the sale will primarily be used to repay financing costs and advances related to project development, with remaining funds allocated for general operational purposes [11]. Market Context - The transaction highlights the challenges faced by distressed real estate companies in liquidating assets under financial strain, reflecting a broader trend in the industrial real estate market [8][12]. - The sale structure, including equity transfer and differentiated payment arrangements, aims to minimize transaction complexity and tax burdens while clarifying responsibilities to reduce potential disputes [12]. - The deal indicates a shift in the Harbin market, where large developers are divesting non-core assets while local firms seek opportunities in existing projects [12].

Core Viewpoint - The company, Huazhong City (01668), has entered into two equity transfer agreements to sell 100% stakes in two project companies in Harbin, China, for a total consideration of RMB 2.17 billion, which will be used to repay financing costs and for general operational purposes [1][2]. Group 1 - The seller, Harbin Huazhong City Co., Ltd., a wholly-owned subsidiary of the company, has signed Agreement A to transfer 100% of Project Company A (Heilongjiang Wanbang Jiyie Real Estate Development Co., Ltd.) for RMB 72 million [1]. - The seller has also signed Agreement B to transfer 100% of Project Company B (Heilongjiang Dingrong Real Estate Development Co., Ltd.) for RMB 145 million [1]. - Asset A, part of the 1668 Industrial Park Project, has a planned land area of 13,000 square meters and a total construction area of 8,700 square meters [1]. - Asset B, known as the Boutique D District Project, has a planned land area of 118,000 square meters and a total construction area of 151,700 square meters [1]. Group 2 - The liquidation team believes that the asset transfer aligns with the seller's business of developing commercial and industrial properties in Harbin, China [2]. - The sale of these properties is expected to provide critical cash flow for the company's domestic subsidiaries to continue operations [2]. - The terms of the equity transfer agreements are considered fair and reasonable, in line with general commercial terms, and are in the company's best interest [2].

Core Viewpoint - The company announced the sale of 100% equity stakes in two real estate development subsidiaries for a total consideration of RMB 2.17 billion, aimed at repaying financing costs and supporting general operational needs [1] Group 1: Transaction Details - The company’s subsidiary, Harbin Huannan City, plans to sell its stakes in Heilongjiang Wanbang Jiyie Real Estate Development for RMB 72 million and Heilongjiang Dingrong Real Estate Development for RMB 145 million [1] - Heilongjiang Wanbang Jiyie holds land parcels known as the 1668 Industrial Park Project C22, with a planned area of 13,000 square meters and a total construction area of 8,700 square meters [1] - Heilongjiang Dingrong Real Estate Development owns assets in the Boutique D District Project, with a planned area of 118,000 square meters and a total construction area of 151,700 square meters [1] Group 2: Use of Proceeds - The proceeds from the sale will be used to repay financing costs incurred by the seller for the development of these assets [1] - Remaining funds will be allocated for general operational purposes of the company’s domestic subsidiaries [1]