YUEXIU PROPERTY (00123.HK): Indirect non-wholly-owned subsidiary to inject RMB 459 million to develop residential plot in Hangzhou Gongshu with Binjiang

NewTimeSpace News: On 1 September 2026, Yuexiu Property Company Limited (stock code: 00123) announced that its indirect non-wholly-owned subsidiary Hangzhou Yile entered into a cooperation agreement with Hangzhou Binjiang, the target company and the project company, pursuant to which the parties conditionally agreed to increase the registered capital of the target company from RMB 50,000,000 to RMB 900,000,000, with Hangzhou Yile and Hangzhou Binjiang subscribing for the new registered capital by making capital contributions of RMB 459,000,000 and RMB 391,000,000 respectively. Upon completion, Hangzhou Yile and Hangzhou Binjiang will beneficially hold 51% and 49% of the equity interest in the project company respectively, and shareholder loans to the target company will also be provided in a 51:49 ratio.

The announcement stated that the target plot is located in the Kangqiao unit of Gongshu District, Hangzhou, with a total site area of 39,938 square meters, to be developed for residential use. The total land premium is RMB 1,810,470,000, of which the deposit of RMB 260,100,000 has been paid, the first instalment of RMB 645,135,000 is payable on or before 3 September 2026, and the balance of RMB 905,235,000 is payable on or before 3 August 2027. The total consideration payable by Hangzhou Yile under the cooperation agreement comprises a capital contribution of RMB 459,000,000, interest of approximately RMB 648,516 and shareholder loans of an expected amount of RMB 489,839,700, to be funded by the Group's internal resources.

As Hangzhou Binjiang is a substantial shareholder of certain project companies which are indirect non-wholly-owned subsidiaries of the Company, Hangzhou Binjiang, the target company and the project company are each connected persons at the subsidiary level of the Company, and the transactions contemplated under the cooperation agreement constitute connected transactions with the highest applicable percentage ratio exceeding 5%, subject to reporting and announcement requirements but exempt from the circular, independent financial advice and independent shareholders' approval requirements. Upon completion, the project company will become an indirect non-wholly-owned subsidiary of the Company and its financial results will be consolidated into the Company's consolidated financial statements.

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