Jingcheng Jia Ye (02210) issued an announcement on September 25, 2024, that Chengcheng Property (a wholly-owned subsidiary of the company...
According to the announcement by Jingcheng Jia Ye (02210) on September 25, 2024, Chengcheng Property (a wholly-owned subsidiary) entered into a set-off agreement with the seller to transfer parking rights to Chengcheng Property to offset a total of RMB 7.581 million in outstanding receivables.
Starting from the second half of 2022, the seller's receivables began experiencing delayed settlement. According to the group's understanding, this is mainly due to various unfavorable factors affecting the seller, such as the macroeconomic environment, a sluggish real estate market, credit and liquidity tightening, etc. After continuous communication and discussion on various measures to recover the outstanding receivables with the seller, both parties agreed to transfer the parking rights to the group to offset part of the seller's outstanding receivables.
Upon completion of the transfer of the parking rights as per the set-off agreement, the parking rights will be confirmed as the group's asset for use on the delivery date. Chengcheng Property will have rights to possession, use, income, and other legitimate business management of the parking rights. The group plans to hold the parking rights for external leasing or transfer to third parties in exchange for cash. As per the set-off agreement, if Chengcheng Property sells the parking rights to a third party, the sales proceeds will be directly deposited into Chengcheng Property's bank account, and the seller will cooperate with property rights transfer procedures until all parking spaces are sold. Chengcheng Property can also lease the parking spaces externally, with all rental income belonging to Chengcheng Property. As the charge payable by Chengcheng Property under the set-off agreement will be offset on a like-for-like basis with the outstanding receivables, the group's receivables will decrease by approximately RMB 7.581 million.