China Communications Construction (01800.HK) announced on November 1st that, upon approval at the 40th meeting of the fifth board of directors, China Communications Group, CCCG Real Estate, CCCG Real Estate (both subsidiaries of CCCG Group), China Communications Investment, and China Communications Investment Corporation (both subsidiaries of the company) entered into an equity transfer agreement. Accordingly, China Communications Group, CCCG Real Estate, China Communications Investment, and China Communications Investment Corporation agreed to conditionally sell and China Communications Real Estate agreed to conditionally acquire 10%, 51%, 15%, and 24% equity of China Communications Service, respectively, for a consideration of RMB 69.99484 million, RMB 356.973684 million, RMB 104.99226 million, and RMB 167.987616 million.

China Communications Service was established on December 13, 2022, mainly engaged in property management, municipal facility management, urban park management, urban greening management, tourist area management, hotel management, dining management, parking services, park management services, engineering management services, corporate management consulting, real estate brokerage, real estate consultancy, and other businesses. As of the date of this announcement, China Communications Service is held by the company through its subsidiaries, China Communications Investment Corporation and China Communications Investment, holding 24% and 15% equity, and directly and through the subsidiary CCCG Real Estate, China Communications Group holds 10% and 51% equity, respectively. After the completion of the sale, China Communications Group will hold 100% equity of China Communications Service through CCCG Real Estate.

The company is a global leading mega infrastructure integrated service provider, with its core business providing comprehensive solutions services for transportation infrastructure projects including investment, design, construction, operation, and management to various global clients. China Communications Service mainly engages in property management, with limited relevance to the company's main business. Through the sale, the company will be able to focus more on the development of its core business, concentrate resources, further enhance the company's core competitiveness, improve profitability, and benefit the overall interests of the company and its shareholders.