On the evening of March 29, Zhejiang Construction Investment Group Co., Ltd. (Zhejiang Construction Investment, 002761.SZ) issued an announcement on the proposed restructuring and related party transactions of some receivables.
According to the content of the announcement, Zhejiang Construction Investment Group Co., Ltd., in order to speed up the resolution of the company’s overdue receivables related to China Evergrande Group and its subsidiaries, the company’s wholly-owned subsidiary The company Zhejiang Construction Engineering Group Co., Ltd. (hereinafter referred to as “Zhejiang Construction Engineering”) plans to cooperate with Hangzhou Jingli Real Estate Co., Ltd. (hereinafter referred to as “Jingli Real Estate”), a subsidiary of China Evergrande Group, and Zhejiang Zhejiang Construction Real Estate Group Co., Ltd. The company (hereinafter referred to as “Zhejian Real Estate”) has reached a tripartite transfer agreement for the construction in progress.
According to the content of the agreement, the transferred assets are the Hangzhou Crystal City Cultural Tourism and Commercial Complex Project (tentative name, hereinafter referred to as the “Crystal City” project) under construction. As the transferor of the Crystal City project, Jingli Real Estate, as a professional real estate development company, has been assigned the Crystal City project and will be responsible for the follow-up development and construction of the Crystal City project through the establishment of a project company. Zhejiang Construction Work is responsible for the professional general contracting construction unit For the follow-up construction of the Crystal City project, it is estimated that the construction amount of the follow-up project will not exceed 2.4 billion yuan.
According to the evaluation and audit results of the intermediary agency entrusted by Zhejiang Construction Real Estate and Zhejiang Construction Engineering, under the assumption of development, the value of the equity of Hangzhou Crystal City project is 3.66 billion yuan (Tentatively, the final construction situation shall prevail) As the transfer consideration, Zhejiang Construction Real Estate will use 920 million yuan of the transfer consideration payable to compensate China Evergrande Group and its subsidiaries for the Zhejiang Construction Engineering and its subsidiary Hangzhou area. The payables and the remaining transfer consideration will be dealt with in the form of realisation or sale at a premium, or by repaying the debt with a house. The debt gap of China Evergrande Group and its subsidiaries in Hangzhou and Huzhou will be resolved in accordance with the unified requirements of relevant government departments. If there is any remaining available To settle the 695 million yuan payable by China Evergrande Group and its subsidiaries to Zhejiang Construction Engineering and its subsidiaries in Huzhou.
The Crystal City project is currently under judicial seizure. Before going through the asset transfer procedures, Crystal Real Estate will coordinate with the local government and relevant creditors to complete the unsealing procedures.
According to the data, Hangzhou Jingli Real Estate Co., Ltd. was established on November 28, 2013. The company has 3 shareholders, including Sanli (China) Holdings Co., Ltd. 39% of the equity; Ningbo Kaiyuan Real Estate Co., Ltd. holds 37.48% of the equity; Ningbo Meishan Bonded Port Area Jianjun Investment Management Partnership (Limited Partnership) holds 23.52% of the equity, and the actual controller of the company is China Evergrande Group.
As of September 30, 2021, Jingli Real Estate had total assets of about 6.988 billion yuan, net assets of 3.523 billion yuan, and a net profit loss of 58.57 million yuan.
The Crystal City project transferred this time is located in the Hangzhou Zhijiang National Tourism Planning Zone, at the northwest corner of the intersection of Shansha River and Planning No. 3 Branch Road. Jingli Real Estate has obtained the right to use the construction land (B-75-3) at the northwest corner of the intersection of the Zhijiang National Tourism Planning Shanshahe and Planning No. 3 Branch Road according to the law through the transfer of state-owned land use rights and signed a corresponding agreement. The “Contract for the Assignment of State-owned Construction Land Use Rights”, the land area is 89,303 square meters, and the above-ground construction area is not more than 223,257.5 square meters.
The project has obtained the Commercial Housing Pre-sale License (2016) No. 5009 (Commercial Phase I). At present, the first commercial block of the project has been delivered, the second commercial block (with a construction area of about 114,000 square meters) has completed the main two-story structure, and the third commercial shopping center and hotel are currently in the stage of pile foundation engineering.
According to official data, Zhejiang Construction Investment Group Co., Ltd. was established on July 11, 1949. The Urban Construction Bureau, the Zhejiang Provincial Construction Engineering Bureau, the Zhejiang Provincial Construction Industry Department, the Zhejiang Provincial Infrastructure Construction Bureau, and the Zhejiang Provincial Construction Engineering Corporation have undergone 15 changes, and have developed into a modern enterprise integrating investment, design, construction, operation and maintenance. The construction service industry chain enterprise group is an overall listed state-owned enterprise in Zhejiang Province. Zhejiang Construction Investment Group has 14 main subsidiaries, 1 school, 4 business divisions, and 1 overseas listed company.
As of the close on March 29, Zhejiang Construction Investment reported 31.77 yuan per share, a decrease of 2.4%.