Gree Real Estate divests property arm to focus on consumer business

Zhuhai Gree Real Estate Company Limited (Gree Real Estate) will transfer 100% equity to Zhuhai Toujie Holding Co., Ltd. for 551,753,650 yuan, following a debt-to-capital reserve conversion of 5,122,200,000 yuan. This divestment aims to optimize Gree Real Estate's asset structure and enhance profitability, aligning with the strategic shift of its parent, Zhuhai Zhumin Group Co., Ltd., to prioritize consumer and duty-free businesses.

The transaction, effective from July 31, 2025, follows an asset-based valuation. Zhumin Group will provide counter-guarantees for Gree Real Estate's pre-existing financial liabilities, ensuring risk mitigation. The asset sale is subject to regulatory approvals and will be funded via three cash installments from Toujie Holding.

This restructuring is expected to significantly improve Zhumin Group's financial safety and sustainable development, with the real estate sector's high capital demands no longer impacting the group’s balance sheet. Post-transaction, Zhumin Group's consolidated assets and revenue are projected to decrease, while its profitability and per-share earnings are expected to improve.