On June 7th, 2024, Shenzhen International (00152.HK) announced that its wholly-owned subsidiary Bay Area Investment and its non-wholly-owned subsidiary Pingshen International signed a debt-for-equity swap agreement. As a result, Bay Area Investment agreed to convert its RMB 30 million total principal amount of Pingshen International's debt into private equity.
After completion, Bay Area Investment's equity interest in Pingshen International will increase from 70% to about 80.92%. Pingshen International will continue to be a non-wholly-owned subsidiary of the company.
Pingshen International holds the Shenzhen Pingshan project, which is the group's smart logistics port under construction. It is located in Pingshan District, Shenzhen, with a total area of about 120,000 square meters and a planned construction area of about 286,000 square meters. The project has obvious location advantages, with information technology, biomedical, new energy vehicles and other industries gathering around it, and a strong demand for logistics services in the region. The project is positioned as a demonstration base for the deep integration of manufacturing and logistics industries in the 20+8 strategic emerging industry clusters in Shenzhen, and also the smart logistics sharing center of the 9+2 strategic emerging industries in Pingshan District. It provides intelligent and efficient comprehensive logistics services for advanced manufacturing industry, and will fill the gap of high-standard logistics facilities in Pingshan District, effectively promoting the deep integration of manufacturing and logistics industry in Pingshan District. The project was successfully selected as a major project of Shenzhen's 2023 and is expected to be completed and put into operation in 2025.
The Group believes that the debt-for-equity swap of Pingshen International will strengthen its capital base, improve its financing capabilities, optimize its capital structure, and help provide sufficient funds for the development and operation of the Shenzhen Pingshan project, ensuring that the project is delivered on schedule and put into operation smoothly, thus implementing the Group's strategic layout in Shenzhen and the Greater Bay Area.