CHINA JINMAO (00817.HK) is adapting its strategy during the industry's deep adjustment period. It has shifted from a broadly positioned "city operator" to a real estate developer that focuses more on core cities, emphasizes product strength and operational quality, and adheres to the principle of "optimizing incremental assets and revitalizing existing stock."
In this process, the company is re-evaluating planned commercial office assets and proactively divesting some low-efficiency and non-performing assets. From this perspective, previous moves such as selling the Sanya Hilton Hotel and the recent listing of project companies for the Fuzhou Binhai Jinmao Smart Science City become much clearer. The core objective is asset optimization.
Listing of Two Project Companies
Recently, two project transfer announcements were updated on the Beijing Equity Exchange. These involve 100% equity and related claims of Fuzhou Xintou Huazhu Development and Construction Co., Ltd. (Xintou Huazhu), and 90% equity and related claims of Fuzhou Xintou Linghang Development and Construction Co., Ltd. (Xintou Linghang).
Xintou Huazhu reported net profits of 0.04 million yuan and -70,400 yuan for 2025 and the first half of 2026, respectively, with a transfer reserve price of 108 million yuan. It is wholly owned by Fuzhou Binmao Real Estate, and tracing back, the indirect shareholder is Sinochem Fangxing Real Estate Development (Zhuhai) Co., Ltd. (Sinochem Fangxing Zhuhai).
Xintou Linghang, meanwhile, recorded net profits of 0.01 million yuan and -86,700 yuan for 2025 and the first half of 2026, with a transfer reserve price of 112 million yuan. It is directly 90% owned by Sinochem Fangxing Zhuhai.
Sinochem Fangxing Zhuhai, which is the common link for both assets, is owned by the listed platform CHINA JINMAO. Therefore, this asset listing is essentially a move by the company to dispose of assets. The listed projects correspond to the Fuzhou Binhai Jinmao Smart Science City project.
Reports indicate that at the end of 2019 and in March 2020, CHINA JINMAO acquired plots 2019 BINPAI-5 and 2019 BINPAI-7 through its subsidiary Fuzhou Xingmao Real Estate for a total of 6.61 billion yuan to develop this project. The project officially launched in June 2024, covering approximately 2.25 million square meters with a total building area of nearly 2 million square meters.
Key features include the Super Engineering Transmission and Distribution Ring, which covers about 520,000 square meters and integrates the station and city. It also includes the Lanshu City, a large self-operated commercial shopping center with a total building area of over 100,000 square meters, positioned as Fuzhou's first coastal micro-vacation themed commercial complex. In December of that year, the project's core building, the Jinmao "China Seal," fully topped out. The China Seal is 213.8 meters tall with 47 floors, planning for offices, a five-star hotel, and an observation deck, originally scheduled to open in 2026.
Asset Optimization
CHINA JINMAO currently pursues a "optimizing incremental assets and revitalizing existing stock" dual-wheel strategy. In June 2024, it launched a "Striving Plan" aiming to solve 80% of its stock problems within three years, accelerating the sell-down of existing inventory. The target for 2025 is 35%, for 2026 is 25%, and for 2027 is 20%.
The company's focus is twofold: first, to strengthen and optimize existing assets to build benchmark projects; second, to reevaluate planned commercial office assets and proactively divest some low-efficiency or non-performing assets to maintain a reasonable asset scale. The current listing of Xintou Huazhu and Xintou Linghang is likely a typical asset optimization move, reflecting its current strategy.
In recent years, the company has gradually undertaken asset sales. For example, in December 2024, CHINA JINMAO sold 100% equity of Jinmao Sanya and related claims for a total consideration of 1.849 billion yuan. The asset underlying this transaction was the Sanya Hilton Hotel. At the time, the company stated the hotel had been operating for nearly 20 years since 2006 and required ongoing renovation. The sale was seen as an opportunity to achieve a total hotel sale at a reasonable price, with the cash flow and profit from the disposal helping to optimize the group's overall financial position and working capital while seeking other new investment opportunities.
However, in the asset optimization process, the company has not only sold assets but also acquired project equity. In June 2026, CHINA JINMAO, through an indirect wholly-owned subsidiary, acquired a 51% equity stake and related claims in "Tianjin Timao Real Estate" for a total consideration of about 884 million yuan. After the transaction, Tianjin Timao became an indirect wholly-owned subsidiary of CHINA JINMAO.
This transaction was not a simple acquisition but rather a "buyback" of equity after two years. In May 2023, CHINA JINMAO acquired the Tianjin Hexi District Tiyuan West plot for 5.91 billion yuan, now known as the "Ti Bei Jinmao Mansion" project. To alleviate project funding pressure, it sold 51% equity of Tianjin Timao for 255 million yuan in May of the following year. Now, to ensure the orderly progress of project development and delivery, the company has bought back this stake.
Last year, all 21 new land projects added by the company were in first and second-tier cities. Investment in the two strategic cities of Beijing and Shanghai accounted for 66% of the total. By the end of 2025, 89% of its unsold value was concentrated in first and second-tier cities.
With its strategy of asset optimization and revitalization, CHINA JINMAO has achieved positive performance results. In 2025, the company reported revenue of 59.371 billion yuan, up 1% year-on-year. Profit attributable to owners was about 1.253 billion yuan, up 18%. Net profit after deducting fair value losses on investment properties reached 1.363 billion yuan, a 2% increase year-on-year. In the first six months of this year, the company achieved cumulative contracted sales of 575 billion yuan, with a cumulative contracted sales area of 2,280,800 square meters.
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