Sunac China announced on November 1, 2024, that it has reached a restructuring arrangement with Changtai Group for 53 real estate development projects. According to previous announcements on April 16 and May 7, 2021, Sunac Southwest Group (an indirect wholly-owned subsidiary of Sunac China) originally planned to jointly develop these projects with Changtai Group. However, the latest supplemental agreement indicates that Sunac Southwest Group will no longer invest the remaining approximately RMB 6.419 billion and will release the joint and several liability guarantee of Sunac Real Estate Group Co., Ltd. Changtai Group will acquire 80% equity of the joint venture company held by Nanning Rongrui for RMB 3.2 billion and will hold 100% equity of the joint venture company. Nanning Rongrui will hold 12 restructuring target projects, with a total...Show More

Sunac China announced on November 1, 2024, that it has reached a restructuring arrangement with Changtai Group for 53 real estate development projects. According to previous announcements on April 16 and May 7, 2021, Sunac Southwest Group (an indirect wholly-owned subsidiary of Sunac China) originally planned to jointly develop these projects with Changtai Group. However, the latest supplemental agreement indicates that Sunac Southwest Group will no longer invest the remaining approximately RMB 6.419 billion and will release the joint and several liability guarantee of Sunac Real Estate Group Co., Ltd. Changtai Group will acquire 80% equity of the joint venture company held by Nanning Rongrui for RMB 3.2 billion and will hold 100% equity of the joint venture company. Nanning Rongrui will hold 12 restructuring target projects, with a total consideration of RMB 2.854 billion. In addition, Nanning Rongrui will acquire debt rights from the joint venture company for RMB 0.346 billion. After the transfer of the joint venture company is completed, Sunac China will no longer have equity in the joint venture company, and is expected to record an unaudited pretax loss of approximately RMB 0.057 billion. The board of directors believes that the supplemental agreement and the transactions thereunder are fair and reasonable, in the overall interest of the shareholders.