An update from CIFI Holdings (Group) Co ( ($HK:0884) ) is now available.
CIFI Holdings has provided additional details on its disposal of a 50% equity interest in a Luoyang residential project joint venture, which comprises two phases of housing blocks. Phase one is completed with about 68% of its salable area sold over four years, while phase two, representing nearly half of the project’s total salable area, has yet to begin construction or pre-sales amid a weak lower-tier city property market.
The company expects to book a loss of around RMB141.9 million on the sale but will receive roughly RMB96.9 million in cash and avoid at least RMB150 million in further capital contributions for phase two, improving liquidity and capital efficiency. The consideration was reached through arm’s length talks with its 50% partner, who exercised pre-emption rights, and the board views the exit as a prudent move to conserve cash, reduce future funding risk, and support long-term financial stability under challenging market conditions.
More about CIFI Holdings (Group) Co
CIFI Holdings (Group) Co. Ltd. is a Cayman Islands-incorporated property developer listed in Hong Kong, focusing on residential real estate projects in mainland China. The group expands its geographical coverage through joint ventures, reflecting a strategy of shared investment and localized project execution in various Chinese cities.
Average Trading Volume: 114,141,204
Current Market Cap: HK$1.47B
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