Securities abbreviation: China Fortune Land Development Co.Ltd(600340) securities code: 600340 No.: pro 2022-005 China Fortune Land Development Co.Ltd(600340)
Progress announcement on the company’s land use right
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents. China Fortune Land Development Co.Ltd(600340) (hereinafter referred to as “the company”) recently received the notice of Guangzhou Municipal Bureau of planning and natural resources on terminating the land transfer contract and its change agreement, and now the relevant information is announced as follows: I. Basic information
The company’s subsidiaries huayuwan (Guangzhou) Real Estate Development Co., Ltd. (hereinafter referred to as “Guangzhou huayuwan”) and yusui Bay (Guangzhou) Real Estate Development Co., Ltd. (hereinafter referred to as “Guangzhou yusui bay”) won the shares of the west of the Pearl River Tunnel in Liwan District, Guangzhou City, Guangdong Province at a transaction price of 6.839 billion yuan in June 2020 Xinlongsha plot to the south of the Pearl River (hereinafter referred to as “white Etan project”) and signed the contract for the transfer of the use right of state-owned construction land and its change agreement with Guangzhou Municipal Bureau of planning and natural resources. According to the above agreement, the company has paid the first phase of land transfer price of 3.415 billion yuan, and has not paid the second phase of land transfer price of 3.415 billion yuan so far.
Because Guangzhou huayuwan and Guangzhou yusui Bay failed to pay the second phase of land transfer price on schedule as agreed in the above agreement, Guangzhou Municipal Bureau of planning and natural resources issued the notice of Guangzhou Municipal Bureau of planning and natural resources on terminating the land transfer contract and its change agreement. The notice stated that Guangzhou Municipal Bureau of planning and natural resources is now cooperating with Guangzhou huayuwan Guangzhou yusui Bay rescinds the contract for the transfer of the right to use state-owned construction land and its change agreement. The contract deposit of 1.367.8 billion yuan collected by Guangzhou Municipal Bureau of planning and natural resources will not be refunded. In addition to the deposit, the paid land transfer fee of 2.051.7 billion yuan can be refunded to Guangzhou Huayu Bay and Guangzhou yusui Bay. 2、 Impact on Listed Companies
After the cancellation of the above contract for the transfer of the use right of state-owned construction land and its change agreement, Guangzhou Municipal Bureau of planning and natural resources will recover the land use right under the contract. The contract deposit of 1.367.8 billion yuan paid by Guangzhou Huayu Bay and Guangzhou yusui Bay is expected to be irrecoverable.
The company is currently negotiating with Guangzhou Municipal Bureau of planning and natural resources on matters related to the termination of the above contract, so as to obtain the understanding of relevant parties as far as possible, so as to mitigate risks and reduce losses. The company will confirm the amount of profit and loss according to the negotiation and the provisions of the accounting standards for business enterprises, and the final amount of profit and loss shall be subject to the audit results of the accounting firm. 3、 Other information
According to the self inspection of the company, there is no similar situation in other projects developed by the company. The company will continue to pay attention to the progress of the above matters and fulfill the obligation of information disclosure in time. Please pay attention to investment risks.
It is hereby announced.
China Fortune Land Development Co.Ltd(600340) board of directors January 29, 2022
