Talent PPT GP (00760.HK) announced on May 31, 2024 that its wholly-owned subsidiary, Yongxiang (which holds a 30% stake in Guangzhou New Land), received a letter from New Land (a company that holds the remaining 70% stake in Guangzhou New Land). According to the letter and the terms of the framework agreement, since (i) Yongxiang is mainly responsible for coordinating the work of the resettlement areas, (ii) the cost of the land paid by Guangzhou New Land for the resettlement areas has exceeded the expected costs in the initial stage of cooperation, and (iii) New Land, as the holder of 70% of the equity of Guangzhou New Land, has indirectly borne such cost overruns, Yongxiang lost its right to receive RMB 99 million in dividends proportionally from the total RMB 330 million to be distributed by Guangzhou New Land.

Upon receiving the letter, the company contacted New Land immediately and negotiated with it in order to reach a reasonable and mutually acceptable solution on the dividend rights of Guangzhou New Land's shareholders. The investment costs, current situation, and other factors related to the Linhe Village reconstruction project have been considered. Yongxiang and New Land have agreed in the shareholder resolution of Guangzhou New Land dated June 2, 2024, that they will receive RMB 48.5 million and RMB 281.5 million respectively out of the RMB 330 million to be distributed by Guangzhou New Land. The shareholder resolution also resolves to liquidate Guangzhou New Land voluntarily. The return of future paid-in capital and any surplus will be distributed according to the proportion of equity, and neither party will claim any other rights against each other.

After considering the duration of the Linhe Village reconstruction project, which lasts more than 10 years, the costs, situation, and relationship with the stakeholders, the board of directors believes that the agreed amount of dividend rights is reasonable and in line with the overall interests of the company and its shareholders. The board of directors also believes that agreeing to reduce dividends will not have a significant adverse impact on the company's financial situation and business operations.