Zhitong Finance App News, Shangji Group (01207) announced that on April 8, 2024, the company and several indirect wholly-owned subsidiaries intend to sell 51% of Shanghai Jinxin's shares and transfer rights under Jinxin's claims to Zhongchong Investment Group Co., Ltd., at a total cost of RMB 3.41 billion (subject to adjustment) to reduce Ningbo Zhongqing's payment.
As of the date of this announcement, Shanghai Jinxin indirectly owned 51% of the shares through such equity sellers, but it is not a subsidiary of the company. After the sale is completed, the company will no longer have any interest in Shanghai Jinxin.
According to reports, Shanghai Jinxin is mainly engaged in the development of the Shanghai Daxing Street project (property rights owned by Shanghai Jinxin wholly-owned). Its main asset is land located at No. 717-719, Daxing Street, Huangpu District, Shanghai. The Shanghai Daxing Street project covers an area of 37,129 square meters. It plans to develop high-end residences, preserve protected buildings, and community commercial properties. The Shanghai Daxing Street project is still in the land acquisition stage and will be controlled by the buyer after the sale is completed. Therefore, the schedule for obtaining a pre-sale certificate for the project depends on the buyer's plans for the Daxing Street project in Shanghai and the development progress of the property, and can only be confirmed after approval by the relevant agencies. According to the company's knowledge and discussions with the buyer during the negotiation process, it is expected to obtain a pre-sale certificate in 2026.
The announcement stated that the proceeds from the sale will increase the company's cash flow situation, provide solutions to cancel syndicated loans and guarantees provided by the Group, reduce the overall level of debt, supplement general working capital, and mitigate the legal and operational risks currently faced by the Group.