Neo-China Land entered into a framework agreement with Oriental Ginza to dispose 100% of the entire issued share capital of Profit Kingsway and loans owed by Profit Kingsway and Tianjin Xin Run Property Development ("Tianjin Xin Run") to Neo-China Land. Proposed consideration was HK$870 million.
Neo China Land mentioned that the proposed disposal enables the group to re-allocate all its resources and the management focus to its remaining business for more efficient management, realize additional cash inflow for the group's working capital, existing operation and future property development.
Profit Kingsway does not have any other businesses other than its interest in Tianjin Xin Run. Tianjian Xin Run currently owns the land use right of the site situated at Laocheng Xiang area, Nankai district, Tianjin, the PRC with a total gross construction area of about 294,038 square meters of which about 216,000 square meters is to be developed into residential building, about 33,238 square meters is to be developed into commercial building and 44,800 square meters is to be developed into office building.
