China Vanke Co., Ltd. announced plans to dispose of 99.41% of Huanshan Group Co., Ltd. through a public tender on the Shenzhen United Assets and Equity Exchange. The minimum aggregate bidding price is fixed at RMB3.27 billion, with the final consideration to be determined by the winning bid. Six indirect subsidiaries—Zhuhai Qinshan Jiaye, Weihai Heda, Weihai Shuonong, Weihai Chunhe, Weihai Muda and Weihai Xinmu—are acting as vendors.

Huanshan, established in 2004, operates in pig breeding, feed production, poultry farming and egg sales. Under PRC GAAP, the company recorded net profits of RMB658.00 million in 2024 and RMB452.00 million in 2025. As of 31 December 2025, Huanshan’s equity attributable to shareholders had a book value of RMB2.68 billion and an appraised market value of RMB3.24 billion.

Upon completion, Huanshan will cease to be consolidated into China Vanke’s financial statements. Based on the minimum bid price, management expects a one-off reduction in net profit of approximately RMB948.00 million, subject to audit confirmation for 2026.

The disposal aligns with China Vanke’s strategy to streamline operations and exit non-core, capital-intensive businesses. Proceeds are earmarked to strengthen working capital and enhance liquidity.

In terms of Hong Kong Listing Rules, the company has applied for a modification to the “profits ratio” calculation under Rule 14.20. If approved, the transaction will be treated as a discloseable transaction, triggering announcement and reporting obligations; further disclosure will follow once the Stock Exchange’s decision and final bid price are available.