C&D PROPERTY (02156.HK): Renews Unsold Unit Underwriting Agreement with Annual Caps of RMB 2.08 Billion

NewTimeSpace News: On 10 November 2026 (after trading hours), C&D Property Management Group Co., Ltd (stock code: 02156) entered into a renewed unsold unit underwriting agreement with its controlling shareholder C&D International for the period from 1 January 2027 to 31 December 2029, under which the Group will provide sales agency services for unsold first-hand residential units and parking spaces developed by the C&D International group, with proposed annual caps of RMB 2.08 billion for each of the three years.

The announcement disclosed that the Group will seek prospective buyers at prices not lower than a price agreed between the parties and procure purchases; buyers will pay the agreed market value to the C&D International group, and any excess of the actual transaction price over the agreed price will be retained by the Group. Market value is calculated as the agreed price multiplied by saleable area for residential units plus the agreed price multiplied by the number of parking spaces. Within 10 business days after written confirmation of the property scope and amounts, the Group will advance 100% of the agreed market value from internal resources, thereby buying the sales rights and securing an exclusive agency.

The Company stated that subsidiaries of both parties will enter into individual agreements; at the end of each settlement period, normally every six months, the parties will reconcile and confirm the list of units sold and actual prices, and C&D International must within 10 business days return the full advance and pay a funding cost initially at 4.0% per annum, subject to adjustment but not lower than 4.0%. The agreed market value of units underwritten is capped at RMB 2 billion a year; assuming a maximum funding cost of RMB 80 million, the proposed annual cap is RMB 2.08 billion for each of the three years to 31 December 2029.

The Company stated that fees received (funding cost) under the agreement were RMB 52.1 million for 2024, RMB 65.2 million for 2025 and RMB 49.6 million for the nine months ended 30 September 2026, while excess amounts received were RMB 28.4 million, RMB 9.6 million and RMB 27.6 million respectively. The funding cost was set by reference to the People's Bank of China loan prime rate and through arm's length negotiation.

The Company stated that C&D International, as controlling shareholder, is a connected person, so the agreement and its transactions constitute continuing connected transactions; as one or more applicable percentage ratios for the annual caps are expected to exceed 5%, the reporting, annual review, announcement and independent shareholders' approval requirements apply and an extraordinary general meeting will be convened. As at the date of the announcement, C&D International holds 565,032,364 shares and has been entrusted with voting rights over 219,945,505 shares by Yining, together about 55.74%, while Yining holds 85,633,525 shares, about 6.08%, excluding the entrusted shares; both will abstain from voting. A circular will be despatched on or before 21 December 2026.