CIMC's Urban Development Unit Recovers 2.534 Billion Yuan by Reducing Leverage and Prioritizing Cash Flow

Stock News
Jan 07

Recently, CIMC (02039) announced that its associated company, CIMC Urban Development Company Limited (holding a 45.92% stake), has successfully sold its Qianhai project. As a top-eight industrial new town operator in terms of comprehensive strength, CIMC Urban Development has successfully recouped 2.534 billion yuan by revitalizing its core Shenzhen Qianhai project—the East Tower of CIMC Qianhai International Center. This divestiture aligns precisely with the company's strategy of "reducing debt and adjusting its structure," providing a benchmark case for industry-wide deleveraging and cash flow stabilization. It is reported that the total gross floor area of the CIMC Qianhai International Center reaches 460,000 square meters; as an integrated industry-city complex with direct access to two subway lines, it encompasses diverse formats such as super high-rise offices and standalone headquarters buildings, and has already achieved phased handovers, fostering a significant industrial cluster effect. By completing the sale of the entire East Tower asset, CIMC Urban Development has successfully revitalized this holding, thereby avoiding the risks associated with long-term asset immobilization while swiftly realizing the asset's value. This capital recovery is a tangible result of CIMC Urban Development's commitment to its "prudent operations" philosophy. The recovered funds will be primarily used to optimize the financial structure and supplement liquidity. Relevant personnel stated that this move effectively reduces the company's debt level, enhances its risk resilience, and lays a solid foundation for sustained and stable future operations. Against the backdrop of the real estate industry's shift towards optimizing existing assets, CIMC Urban Development's proactive approach to revitalizing its core assets not only responds to national policy directives but also offers a replicable practical pathway for similar enterprises aiming to deleverage and stabilize their cash flow.

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