Gelonghui Co., Ltd. (000981.SZ) announced that due to factors such as weak demand for home purchases, the overall performance of the domestic real estate market has been sluggish in the past two years. Property market prices have continued to decline, making it difficult for the company to operate its real estate business. The assets to be divested in the real estate sector include two parts, namely the company's equity assets of Ningbo Yinyi Real Estate Development Co., Ltd. (“Yinyi Real Estate”) and the company's debt assets to the enterprise to be divested. Yinyi Real Estate's current development projects and land reserves are located in non-core cities. The existing real estate assets are mainly surplus commercial offices and parking spaces. Under the current macroeconomic situation and real estate market conditions, it is very difficult to eliminate the company's real estate projects and stock assets, and the real estate business has dragged down the company's performance.
This time, the company's divestment of the real estate business and related assets will not only reduce the company's losses and revitalize existing assets, but also help the company focus its energy and resources on the automobile industry ecosystem centered on vehicle manufacturing, accelerate progress on a new track, and accelerate transformation into a high-tech company. Driven by high growth and high certainty brought about by the new business, it is conducive to the high-quality development of the company and safeguarding the interests of the company and investors. The divestment is intended to be implemented through public listing and transfer of shares and claims related to the real estate business through a property rights trading agency. The final transaction price is based on the actual transaction price confirmed by the property rights trading agency.