Gelonghui, March 25 | Ruian Real Estate (00272.HK) announced that on March 25, 2024, Shanghai Panlong (a non-wholly-owned subsidiary of the company) signed a sale agreement with Shanghai Qingpu Xujing. According to this, Shanghai Panlong agreed to sell, while Shanghai Qingpu Xujing agreed to buy and sell assets at a consideration of approximately RMB 105 million.
The assets sold include the land use rights for the plot and the property. The plot is located at 1151 Longlian Road, Xujing Town, Qingpu District, Shanghai, China (Lot number: A02-01). The property is a hotel built on this plot with a total construction area of approximately 4,816.45 square meters.
After considering the recent market conditions in Shanghai, the Group's asset-light strategy to improve its asset turnover ratio and capital efficiency, and the initial assessment value of the sale of assets, the company believes that although it is expected to incur a small loss amount, the sale is a good opportunity for the Group to dispose of the assets sold in return and generate additional working capital for the Group at a favorable cost.