YUEXIU PROPERTY (00123) has announced that on February 13, 2026, its indirect non-wholly-owned subsidiary, Hangzhou Yuejia, and Zhejiang Jianhang intend to acquire a combined 65.35% effective interest in Hangzhou Binwan Real Estate Development Co., Ltd. (the project company) from Hangzhou Binjiang Real Estate Group Co.,Ltd. (002244). Upon completion, the seller, Hangzhou Yuejia, and Zhejiang Jianhang will beneficially hold 34.65%, 35.35%, and 30.00% equity in the project company, respectively. Their proportions for providing shareholder loans to the project company will also be 34.65%, 35.35%, and 30.00%, respectively.
The total consideration comprises (i) an equity transfer portion of approximately RMB 282.8 million to be contributed by Hangzhou Yuejia as paid-in capital to a joint venture company; (ii) interest payable by Hangzhou Yuejia, estimated at around RMB 1.6378 million; and (iii) a shareholder loan to be provided by Hangzhou Yuejia, estimated at RMB 316 million. This amount is determined based on Hangzhou Yuejia's 35.35% effective interest in the total land premium and project company funding post-completion, plus interest payable to the seller.
According to the cooperation agreement, the seller and Hangzhou Yuejia will establish a joint venture company within 20 working days from the agreement date. The joint venture will have a registered capital of RMB 560 million, with the seller and Hangzhou Yuejia holding 49.50% and 50.50% stakes, respectively. After completion, the seller will (a) transfer a 70.00% equity stake in the project company to the joint venture, and (b) transfer a 30.00% equity stake to Zhejiang Jianhang. This will result in the project company being beneficially owned 34.65% by the seller (via the joint venture), 35.35% by Hangzhou Yuejia (via the joint venture), and 30.00% by Zhejiang Jianhang. The three parties have agreed to fund the project company for developing the target site in the same proportions.
The project company was newly established by the seller specifically for developing the target site. The site is located in the Xiaoshan District of Hangzhou, China, with a total site area of 28,869 square meters, earmarked for residential development. Apart from developing the site for residential sale, the project company is not expected to engage in any other business. The target site boasts excellent geographical advantages, supported by comprehensive commercial, educational, and transportation infrastructure in the surrounding area.
The seller is a leading real estate company in Hangzhou, China, renowned for its high-quality projects and strong customer reputation. The Directors believe that cooperating with the seller will enhance the development efficiency and resource allocation for the target site. They consider the acquisition of the interest in the target site to be in the Group's best interests.
Following the transaction's completion, Hangzhou Yuejia will hold a 50.50% stake in the joint venture, which in turn will hold a 70.00% stake in the project company. Consequently, the project company's financial results will be consolidated into the Company's financial statements and are expected to contribute to the Group's overall operational scale and financial performance.