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On July 7, Gree Real Estate (600185) issued an announcement to make major adjustments to its original major asset restructuring plan. Regarding the previous plan to issue shares and pay cash to purchase 100% of the equity of Zhuhai Duty Free Group and raise matching funds at the same time, it is planned to adjust it to dispose of the assets and liabilities corresponding to the relevant real estate development businesses held in Shanghai, Chongqing, Sanya and other places, and at the same time acquire no less than 51% of the equity of Zhuhai Duty Free Group. The transaction will no longer involve the issuance of shares or the raising of matching funds, and the valuation difference between the acquired and disposed assets will be made up in cash.

Prior to this, Gree Real Estate had launched a restructuring plan to acquire Zhuhai Duty Free Group as early as 2020, but the process was full of twists and turns, and encountered many obstacles during the period due to unexpected situations such as the investigation of the company's former chairman Lu Junsi. However, investors are still enthusiastic about the company's restructuring expectations. After the announcement of the major adjustment of this restructuring plan, Gree Real Estate's stock price rose by the daily limit for two consecutive trading days.

On the afternoon of July 29, Gree Real Estate held an investor briefing to explain the adjustments made in this major asset reorganization.

First, regarding the reason for adjusting the restructuring plan, Gree Real Estate said that the company is based on the overall strategic consideration of gradually withdrawing from the real estate development business to achieve the transformation of the main business, and comprehensively considering the good business operation and future development prospects of Zhuhai Duty Free Group. The placement of the target assets will help realize the transformation of the listed company's main business to the main business dominated by the duty-free business, and improve the asset quality and profitability of the listed company. At the same time, combined with the listed company's own situation and future strategic planning adjustments, the original plan for major asset restructuring was significantly adjusted.

Gree Real Estate further stated that the duty-free industry, as one of the industries with stable income and good development prospects, is in line with the company's long-term development strategy and transformation needs. The new plan enables the company to focus more on the duty-free business, an area with high growth potential and stable income, by acquiring no less than 51% of the shares of Zhuhai Duty Free Group.

"The acquisition of Zhuhai Duty Free Group will help the company achieve its transformation to a business dominated by duty-free business. Duty-free business can not only bring new profit growth points to the company, but also help the company optimize its business structure and reduce its dependence on traditional real estate development business. In the process of transformation, Gree Real Estate will make full use of its experience and resources in real estate development, commercial operations, etc., and organically combine them with duty-free business to maximize the use of resources."

In view of the twists and turns encountered in the previous restructuring process, investors are generally concerned about the progress of the restructuring after this adjustment. Gree Real Estate said that the major adjustments to the company's restructuring plan have been agreed in principle by the Zhuhai State-owned Assets Supervision and Administration Commission, and the company is organizing independent financial advisors, legal advisors, auditing agencies, evaluation agencies and other intermediary institutions to continue to carry out related work. After the original restructuring plan was adjusted, the specific transaction plan still needs further demonstration and communication and negotiation. The specific details of the restructuring plan are currently being communicated and produced. Relevant work includes further demonstration and communication and negotiation of the specific transaction plan, and simultaneous auditing, evaluation and other related work. The company will continue to give priority to restructuring work and strive to complete the restructuring with high quality and efficiency.

It is worth mentioning that in this restructuring and adjustment plan, Gree Real Estate plans to dispose of its related real estate development businesses in Shanghai, Chongqing, Sanya and other places. The above assets mainly cover Gree Real Estate's real estate business assets outside Guangdong Province, but in Guangdong Province, especially in Zhuhai where its headquarters is located, Gree Real Estate is still an important local real estate developer. In this regard, some investors asked about the company's arrangement plan for real estate business in Zhuhai.

In response, Gree Real Estate said that the specific plan for this asset swap is still under further discussion and communication and negotiation, including the specific scope of assets involved.