China Merchants Property sells 60% subsidiary stake to Hengyang High-tech Zone

China Merchants Property Operation & Service Co., Ltd. (CMPOS) announced the transfer of a 60% stake in its controlling subsidiary, Hengyang AVIC Real Estate Co., Ltd., for 1,675,649.92 yuan. This decision, approved by the board on November 11, 2025, requires the transferee to also assume Hengyang AVIC's debts. The transfer aims to revitalize historical assets and enhance asset quality.

On November 13, 2025, CMPOS publicly listed the 60% equity for sale on the Beijing Equity Exchange. Hengyang High-tech Zone Investment & Development Co., Ltd. emerged as the sole qualified bidder, matching the asking price. A Property Rights Transaction Contract was signed between CMPOS and Hengyang High-tech Zone Investment & Development Co., Ltd. on December 25, 2025.

The transaction is expected to decrease CMPOS's net profit attributable to shareholders by approximately 264m yuan in the 2025 consolidated financial statements. The company states this sale will not impact its core business operations.