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Aoyuan to Acquire 29.99% of Shares of Kinghand Group Continued Cultivation of Existing Regions with Traditional M&A Strengths


  (7 April 2020 - Hong Kong) China Aoyuan Group Limited (“Aoyuan” or the “Company”; Stock Code: 3883) announces that it has entered into a framework agreement for acquisition of 29.99% shares of Kinghand Industrial Investment Group Co., Ltd. (“Kinghand Group”), at a total consideration of approximately RMB1.16 billion. The consideration will be funded by the Company’s internal resources.


  Kinghand Group (SZSE Stock Code: 000615) is mainly engaged in property development in the PRC. With substantial experience in property development and management, Kinghand Group has successfully completed many mid- to high-end real estate projects over the years. As of 30 September 2019, its unaudited net asset value amounted to RMB2.89 billion. Kinghand Group has 18 projects with total saleable GFA of approximately 1.24 million sq.m., which have obtained land certificate and are mainly located in Beijing, Tianjin, Chongqing, Chengdu, Nanjing, Taiyuan, Guangdong Province, Hebei Province, etc..


  Aoyuan management commented, “In 2019, Aoyuan recorded approximately RMB118.1 billion of property contracted sales, rendering the Company among the Top 30 PRC Developers with a strategic layout in South China, core regions of Central and Western China, East China and Bohai Rim. Upon completion of the acquisition, Kinghand Group will become a subsidiary of the Company, allowing the Company to strengthen its landbank and further increase the proportion of operations in Tier 1 and 2 cities. This will facilitate cultivation of existing regions and enhance the Company’s market share and influence. Looking forward, with property development as its core business, Aoyuan will continue to strengthen its strategy of ‘one core business with vertical development’ as well as to leverage its traditional M&A strengths to achieve sustainable growth with equal emphasis on scale and quality, thereby bringing fruitful returns to shareholders and investors.”



The Agreement Signing Ceremony


For details please refer to company announcement on HKEx: