Evergrande Group Photo: CFP

State-owned China Railway Construction Investment Group (CRCC) plans to transfer 49 percent of equities in an Evergrande-controlled enterprise named Hengda Zhiye, which is based in Shenzhen city, with the holdings to be sold at a minimum of 2.66 billion yuan ($398.8 million), a services platform said on Tuesday.

According to the National Equity Industry Information Comprehensive Services Platform, the Shenzhen-based Hengda Zhiye has business operations in real estate development, housing rental as well as interior home decoration.

At present, the company is 51 percent owned by Evergrande and 49 percent owned by China Railway Construction Investment Group.

Its 2021 financial data showed that the annual operating income of Hengda Zhiye totaled at only 2.02 million yuan, recording an operational loss of 247 million yuan.

As of February 28, 2022, the company had operating income of 106,800 yuan with net profit standing at 57,700 yuan, while its liabilities hit $3.3 billion yuan.

In December 2019, China Railway Construction Investment Group acquired 49 percent shares of Hengda Zhiye for 2.31 billion yuan. During that same year, China Railway Construction Co. signed a strategic agreement with Evergrande to carry out extensive cooperation in the fields of engineering construction, real estate development, investment and financing, among others.


Global Times