Securities code: China State Construction Engineering Corporation Limited(601668) stock abbreviation: China State Construction Engineering Corporation Limited(601668) No.: pro 2022013 project on the protection of historical features and urban renewal in Shanghai
Announcement of changes in investment matters
The board of directors and all members of the board of directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of the announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of the contents.
Important content tips:
The shareholder contribution ratio of Shanghai Zhonghai Haiting Real Estate Co., Ltd., one of the project companies of the project, is proposed to be changed from 98% by Zhonghai development (Shanghai) Co., Ltd., a subsidiary of the company, and 2% by Shanghai Zhongcheng Enterprise Group Real Estate Co., Ltd., to 2% by Zhonghai development (Shanghai) Co., Ltd., a subsidiary of the company, and 98% by Shanghai Yongye enterprise (Group) Co., Ltd.
Risk warning: the project is located in the core urban area of Shanghai, and the implementation cycle of the project is long. The risks caused by subsequent house expropriation, local government industrial policy adjustment, real estate market conditions and other changes may affect the expected income of the project.
1、 Overview of investment changes
(I) overview of original investment
On July 28, 2020, the 41st meeting of the second board of directors of China State Construction Engineering Corporation Limited(601668) (hereinafter referred to as the company) deliberated and adopted the proposal on the historical feature protection and urban renewal project of neighborhood 67-71, Jianguo East Road, Huangpu District, Shanghai, CNOOC Group, Zhonghai development (Shanghai) Co., Ltd. (hereinafter referred to as Zhonghai (Shanghai) Company) under the company signed a contract with Shanghai Zhongcheng Enterprise Group Real Estate Co., Ltd. (hereinafter referred to as Zhongcheng group) to jointly develop the historical style protection and urban renewal project of block 67-71, Jianguo East Road, Huangpu District, Shanghai (hereinafter referred to as the project). Both parties have jointly established Shanghai Zhonghai Haihua Real Estate Co., Ltd. (hereinafter referred to as Haihua Company) and Shanghai Zhonghai Haiting Real Estate Co., Ltd. (hereinafter referred to as Haiting company) according to the investment ratio of 98%: 2% to implement the project house expropriation and subsequent development respectively. Among them, Haihua company is responsible for the development and construction of neighborhoods 69 and 70; Haiting company is responsible for the development and construction of neighborhoods 67, 68 and 71. The overall development cycle of the project is planned to be about 6 years, and the total investment of the project is expected to be about 59 billion yuan. The capital sources of the project include self owned funds, shareholder loans, bank development loans, reinvestment of sales proceeds, etc. For details, please refer to the announcement on investment in Shanghai historical features protection and urban renewal project (Announcement No.: pro 2020052) issued by the company on July 29, 2020.
(II) investment changes
1. Registered capital and equity ratio of Haiting company
Due to the industrial regulatory policies and the adjustment of the actual development cycle of the project, in order to promote the progress of the project as soon as possible, promote the overall cooperative development of the project and give full play to the advantages of the project partner, through consultation with the project partner Shanghai Yongye enterprise (Group) Co., Ltd. (hereinafter referred to as Yongye group), It is proposed to change the shareholder contribution ratio of Haiting company, one of the development companies of the project, from 98% contribution of China Shipping (Shanghai) company, 2% contribution of Zhongcheng group, to 2% contribution of China Shipping (Shanghai) Company and 98% contribution of Yongye group. In the early stage, 2% of the capital contribution of Haiting company held by Zhongcheng group has been transferred to Yongye group, and the subsequent equity proportion adjustment of Haiting company is planned to be realized through the capital increase of Haiting company by Yongye group.
The changed partner Yongye group is the parent company of the original partner Zhongcheng group. Yongye group is a wholly state-owned company under the state owned assets supervision and Administration Commission of Huangpu District, Shanghai. The legal representative of the company is Dai Jinliang, with a registered capital of 3 billion yuan. Its main business is old house reconstruction, real estate development and operation, property management, relocation and demolition, building construction, etc.
2. Change of planned investment amount of the project
Due to the additional land price due to the increase of planned residential capacity construction area, the estimated total investment of the project increases by 500 million yuan, from the original estimated total investment of about 59 billion yuan to 59.5 billion yuan. Due to the reduction of the company’s contribution to Haiting company, the company’s actual contribution to the project will be reduced accordingly.
3. Project development cycle
According to the actual development progress of the project, the original estimated overall development cycle of the project is about 6 years, and it is proposed to change to the estimated overall development cycle of about 6.5 years.
(III) deliberation and approval process of the board of directors
On March 7, 2022, the 14th meeting of the third board of directors of the company deliberated and approved the proposal on the investment change of the historical feature protection and urban renewal project of block 67-71, Jianguo East Road, Huangpu District, Shanghai, China Shipping Group. The proposal does not need to be submitted to the general meeting of shareholders of the company for deliberation and approval.
(IV) this investment change does not constitute related party transactions and major asset restructuring.
2、 Impact of the project changes on the company
As a key project of Shanghai People’s livelihood, the company has strong brand value and is in line with the development strategy of Shanghai. The change of the project is conducive to give full play to the advantages of the project partners and promote the follow-up overall cooperative development of the project, and will not have a significant impact on the company.
3、 Risk analysis
The project is located in the core urban area of Shanghai and has a long implementation cycle. The risks arising from subsequent house expropriation, local government industrial policy adjustment, real estate market conditions and other changes may affect the expected income of the project.
The company will pay close attention to and study the national macroeconomic and industrial trends, adopt positive development planning and business strategies, steadily promote the approval of the project, house expropriation and other work, and timely conduct risk assessment and adjust coping strategies in combination with the actual situation.
It is hereby announced.
China State Construction Engineering Corporation Limited(601668) board of directors March 7, 2002
