Minmetals Capital forms real estate JV, expects significant investment loss

Minmetals Capital Company announced that its subsidiary, Minmetals International Trust Co., Ltd., will establish a joint venture with Minmetals Real Estate Holdings Co., Ltd., a wholly-owned subsidiary of its controlling shareholder, China Minmetals Corporation Limited. The new entity, Beijing Kuangxin Urban Construction Development Co., Ltd. (tentative name), will have a registered capital of CNY 100,000 million. Minmetals International Trust will contribute CNY 30,000 million for a 30% equity stake, while Minmetals Real Estate Holdings will contribute CNY 70,000 million for a 70% stake. The transaction is a related-party transaction and requires shareholder approval.

The joint venture aims to leverage Minmetals Real Estate Holdings' expertise to professionally manage and revitalize Minmetals International Trust’s real estate-related trust assets, enhancing operational efficiency and optimizing resource allocation. An appraisal report from China Water Conservancy and Hydropower Engineering Consulting Co., Ltd. valued the asset package contributed by Minmetals International Trust at CNY 162.90 million as of June 30, 2025.

The board of directors approved the proposal on November 19, 2025, with associated directors recusing themselves. Minmetals International Trust expects to recognize an investment loss of CNY -60,657.58 million from transferring trust beneficiary rights. Minmetals Capital Holdings Co., Ltd. is expected to incur an additional investment loss of CNY -9,805.38 million. Minmetals International Trust’s own contribution of trust beneficiary rights will result in an additional loss of CNY -52,536.66 million, with prior fair value changes of CNY -455,345.96 million being offset.