Fineland Living Services Group (HKG:9978) scrapped its settlement deal with Heshan Fudu Property Development after Heshan Fudu failed to meet key conditions by the deadline, according to a Nov. 28 Hong Kong bourse filing.

Shares of the real estate agency services provider were up nearly 4% in Monday late morning trade.

Fineland's unit had agreed to take property assets instead of a 4 million yuan down payment and 16 million yuan in receivables.

The deal collapsed because Heshan Fudu did not deliver possession, construction was heavily delayed, and no valid title transfer or disposal rights were provided.

Fineland rescinded the agreement on Nov. 28. Heshan Fudu must return the 4 million yuan down payment within ten business days, with a 0.01% daily penalty for late payment.

It also remains liable for the 16.0 million yuan receivable and other trade sums, the filing said.

Fineland said Heshan Fudu owes about 64 million yuan in total and may face legal action as the company reviews the developer's assets and liquidity.