Guangzhou R&F Properties Co., Ltd. (R&F Properties) has finalised the sale of its 33.34% equity interest in a joint-venture company (the “Target Company”) for a total consideration of RMB283.00 million.
The headline price was initially set at RMB160.00 million, subject to an upward adjustment equal to 33.34% of any corporate income-tax refund received by the Target Company. Following completion, the Target Company secured a RMB369.00 million refund, lifting R&F Properties’ share of proceeds to RMB123.00 million and bringing the final consideration to RMB283.00 million.
The adjusted consideration aligns with an independent asset-based valuation of the same equity stake—also RMB283.00 million as of 30 April 2026—providing valuation support for the transaction.
Prior to the disposal, the Target Company faced outstanding land-appreciation tax and late-payment penalties pursued by the Guangzhou Municipal Tax Bureau. Those liabilities, previously a potential burden on R&F Properties, have now been transferred to the buyer, who has subsequently settled the amounts in full.
Management highlighted that the sale delivers immediate liquidity amid persistent challenges in China’s property market. The cash inflow reinforces operational stability and helps optimise resource allocation while eliminating R&F Properties’ exposure to the Target Company’s tax obligations.
The board stated that the transaction was negotiated on an arm’s-length basis, reflects fair and reasonable terms, and serves the best interests of shareholders.
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