Bailian Group finalizes $102.9m land compensation deal with related party

Shanghai Bailian Group Co., Ltd. announced a compensation plan totaling CNY 102,967,400 for the acquisition of three land parcels on Gongqing Road by the Yangpu District Land Reserve Center. This compensation will be paid to Shanghai Friendship Group Logistics Co., Ltd., a wholly-owned subsidiary of Bailian Group's controlling shareholder, making it a related party transaction. The compensation covers land use rights, buildings, interior decoration, ancillary facilities, green seedlings, relocation and installation costs for recoverable machinery, material relocation, irrecoverable machinery, and business interruption losses. The valuation was determined based on reports from Shanghai Dongzhou Real Estate Land Valuation Co., Ltd. and Shanghai Cairui Asset Appraisal Co., Ltd.

The land parcels, with a total building area of 71,242 square meters and a land area of 151,075 square meters, were previously leased to Shanghai Friendship Group Logistics Co., Ltd. The compensation agreement was approved by the company's tenth board of directors and the 2024 annual general meeting. The compensation is broken down by parcel: Gongqing Road 310 and 210 will receive CNY 49,154,721; Gongqing Road 295 will receive CNY 26,245,185; and Gongqing Road 435 will receive CNY 27,567,494.

The company confirmed the completion of relocation for the Gongqing Road 295 parcel on December 11, 2025, with the remaining compensation due by March 21, 2026. The handover of the Gongqing Road 435 parcel, initially planned for December 31, 2025, has been extended to June 30, 2026, due to tenant and environmental remediation issues.