Yuexiu Property Company Limited announced a series of connected disposals totalling RMB 4.69 billion, covering six agreements with subsidiaries of its controlling shareholder Guangzhou Yue Xiu Holdings Limited (GZYX).
Key Transactions • Nansha IFC – Entire equity of three project companies sold to Guangzhou Paper Group for RMB 1.93 billion. • Yungu Industrial Park – Equity of the park operator transferred to Guangzhou Yuexiu Intelligent Manufacturing for RMB 1.09 billion; the S1 ancillary building sold for RMB 58.21 million. • Zhigu Industrial Park – Equity disposal to Guangzhou Yuexiu Intelligent Manufacturing for RMB 453.22 million; purchaser will arrange RMB 520.13 million loan repayment. • Bijie Hotel – Equity disposal to Guangzhou Yuexiu Industrial Investment for RMB 2.72 million; purchaser will arrange RMB 241.85 million loan repayment. • Healthcare Platform – Entire equity of two Kangyang entities sold to Guangzhou Yuexiu Health for RMB 2.84 million; purchaser will arrange RMB 392.61 million loan repayment. Relevant healthcare software IP was transferred earlier for RMB 9.08 million.
Valuation and Premium Independent valuer Jones Lang LaSalle assessed the combined asset value at RMB 3.42 billion; combined share considerations and asset prices represent a 3.3% premium.
Financial Effects • Gross proceeds: RMB 4.69 billion (including loan repayments). • Net proceeds: about RMB 4.46 billion after taxes and expenses. • Use of proceeds: RMB 400 million to repay existing bank borrowings; remaining RMB 4.06 billion for land premium and construction costs. • Expected post-tax gain: roughly RMB 108 million. • Pro-forma gearing ratio to fall from 40.8% to 39.3% (31 Dec 2025 basis).
Strategic Rationale The board stated the sale accelerates capital recycling, exits non-core assets (Guizhou hotel, early-stage healthcare business) and releases funds for core residential development in Tier-1 and key Tier-2 cities.
Connected Transaction and Approval Because all purchasers are GZYX subsidiaries, the disposals constitute major and connected transactions. GZYX and its associates, together with executive director Lin Zhaoyuan, will abstain from voting. Independent shareholders will consider the resolution at an extraordinary general meeting on 15 June 2026 in Hong Kong.
Governance An independent board committee comprising all four independent non-executive directors has been formed. Somerley Capital Limited has been appointed as the independent financial adviser.
Implementation Each agreement becomes effective upon independent shareholders’ approval; payments are due within five working days of effectiveness, while equity and property title transfers will follow local registration completion. Somerley opines the terms are fair and reasonable; the board recommends shareholders to vote in favour.