Red Star Macalline seeks waiver on property development pledge

Red Star Macalline Group Corp (SSE:601828) announced its board's approval to seek shareholder consent for waiving certain voluntary commitments related to property development. The initial commitment, made in 2020, restricted the company from engaging in property development and sales, in adherence to macro-control policies. The proposed waiver would allow the company to pre-sell portions of existing project land and properties to improve cash flow and asset turnover. The company says its strategic shift aims to address stalled construction and idle assets. This is designed to improve liquidity without fundamentally altering its core business model and is expected to enhance operational efficiency. The board believes it serves the interests of shareholders. The proposal remains subject to shareholder approval.