China South City liquidators announce property disposals

China South City Holdings Limited (in Liquidation) announced two equity transfer agreements for the disposal of 100% equity interests in Project Company A and Project Company B, which hold Property A and Property B respectively. The first agreement, dated August 11, 2025, involves the sale of Project Company A for a consideration of 72.0 million yuan. The second agreement, dated September 19, 2025, outlines the disposal of Project Company B for 145.0 million yuan. These disposals are expected to generate approximately 217 million yuan in aggregate consideration.

The liquidators anticipate the Group will record a loss on disposal of approximately 662 million yuan, given the carrying value of the properties was approximately 879 million yuan as at December 31, 2024. The proceeds from these disposals will be used to repay financing costs and advances incurred by the vendor, with any excess allocated for the general working purposes of the Group’s onshore subsidiaries.

As one of the applicable percentage ratios for these transactions is between 5% and 25%, the disposals are classified as discloseable transactions under Chapter 14 of the Listing Rules, requiring reporting and announcement but exempting them from shareholders' approval. Trading in the company's shares has been suspended since 10:55 a.m. on August 11, 2025 and remains suspended.