Financial Association, September 25 (Reporter Wang Haichun) Country Garden Services transferred part of its equity in Wanda Commercial Management.

According to the announcement issued by Country Garden Services, on September 24, Country Garden Property Hong Kong, a subsidiary of the company, entered into a supplementary agreement with Zhuhai Winy and Dalian Wanda. Country Garden Property Hong Kong agreed to sell, while Wanda agreed to acquire Zhuhai Wanda shares at a price of 3.142 billion yuan. The sale of shares this time accounts for approximately 1.49% of the target company's total share capital.

Public information shows that Country Garden Property Hong Kong is an indirectly wholly-owned subsidiary of Country Garden Services; as of the date of the above announcement, Zhuhai Winy is a wholly-owned subsidiary of Dalian Wanda, mainly engaged in corporate headquarters management, corporate management consulting, and investment activities with its own funds.

The cooperation between Country Garden Services and Wanda started several years ago.

In July 2021, Country Garden Property Hong Kong purchased 130,055,000 shares of the target company from Zhuhai Winy at a price of approximately 3.23 billion yuan ('initial purchase price'), equivalent to approximately 1.79% of the target company's total share capital.

According to the existing investment agreement, Country Garden Services has early transferred its equity and realized the agreed profits. As of September 24, Country Garden Property Hong Kong still holds approximately 0.31% equity in Wanda Commercial Management.

As per the information disclosed by Country Garden Services, compared with the acquisition date agreed by the parties under Supplementary Agreement (II) (i.e., no later than December 31, 2024), the early realization of the sale has fulfilled Wanda's obligation to repurchase the target shares under the Supplementary Agreement (II), providing a suitable opportunity for Country Garden Services to realize the return on investment.

Cg services stated that after deducting the initial investment cost of the target shares confirmed by the company, it is approximately 2.681 billion yuan. This transaction is expected to increase the net value of the group's assets by approximately 0.461 billion yuan (unaudited).

Regarding the reason for this transaction, cg services mentioned, 'The sale is for the strategic focus and reduction of the financial investment scale of the group, repurchasing shares according to the investment exit plan, helping the group to retrieve funds, and focusing on operating the core business of the group.'

At the time of the transfer of 1.49% equity stake in Wanda Commercial Management by cg services, country garden holdings limited also signed a supplementary agreement with Wanda Commercial Management.

It is understood that in December last year, Country Garden signed an agreement with Wanda Commercial Management and Zhuhai Wanying to transfer its equity in Zhuhai Wanda Commercial Management for a price of 3.069 billion yuan.

According to the announcement released by Country Garden Holdings Limited on September 24th, the price of the sale remains unchanged at 3.069 billion yuan.

Country Garden Holdings Limited stated that as of the announcement date, the first delivery date has occurred. Based on this, Country Garden's wholly-owned subsidiary Jinyi Huanqiu and the transferee have respectively transferred the first target shares and made the first payment in accordance with the agreement. Payments under the price arrangement (including the second payment and the third payment) and the transfer of the second-phase target shares under the agreement will be revised according to the supplementary agreement.

Regarding the supplementary agreement of the 3.069 billion yuan sale of 1.79% equity stake in Zhuhai Wanda Commercial Management disclosed by Country Garden Holdings on September 24th, Country Garden Group responded to reporters on September 25th that the supplementary agreement signed with Wanda on the equity transfer was to flexibly adjust the payment and delivery arrangements stipulated in the original agreement after friendly negotiations by both parties to accommodate the actual procedures involved by the exchange. The agreed 3.069 billion yuan transaction price and other major terms of the sale remain unchanged.

"By signing this supplementary agreement, both parties can smoothly advance the remaining transaction procedures, better aligning with the overall interests of the company and stakeholders," said the Country Garden Group.

In terms of sales performance, according to the data disclosed by Country Garden, in August 2024, a total of about 3.43 billion yuan in contract sales amount attributable to the company's shareholders was achieved for the month. In addition, Country Garden informed reporters that in the first 8 months of 2024, the total equity sales amount of the company was approximately 32.8 billion yuan.

In terms of delivery and turnover, according to the information disclosed by Country Garden on September 19, 2024, in the first half of 2024, Country Garden Guangqing region delivered a total of 5826 sets of houses, with a cumulative delivery area of 0.7076 million square meters, and the on-time delivery rate was 100%. In addition, in July and August 2024, the Guangqing region delivered over 2000 sets of houses.