Kaijian Subsidiary Sells Shanghai Jiading Assets for 35M Yuan Net Gain; Debt Restructuring Progresses

Gate News message, April 22 — Kaijian (01098.HK), a Hong Kong-listed property developer, announced on April 21 that its indirect wholly-owned subsidiary Shanghai Heqiang Real Estate Development Co., Ltd. will sell an 80% stake in Shanghai Junxin Property Co., Ltd. to co-sellers for a total consideration of 116.4 million yuan ($16.3 million). Kaijian's share of the proceeds is 94.4 million yuan, with a net gain of approximately 3.5 million yuan recorded on the transaction.

The target company primarily develops residential properties, parking spaces, and self-owned apartments in Waixigang Town, Jiading District, Shanghai. As of the announcement date, all residential units have been sold and delivered. Remaining assets include 434 unsold parking spaces and self-owned apartments with a total building area of approximately 10,442.6 square meters. Kaijian stated the sale aims to optimize asset utilization efficiency, recover invested capital, and meet current liquidity needs including tax payments and general operational expenses, given the company's current financial condition and overall real estate market outlook.

Kaijian, which entered a debt crisis, is advancing its offshore debt restructuring. On March 16, the company announced a preliminary restructuring agreement with a significant proportion of creditors, including members of the Ad Hoc Group (AHG). The plan will be implemented through two mutually conditional debt restructuring arrangements: the "New Choice Plan" and the "Kaijian Plan." As of late March, two AHG institutions representing approximately 65% of the group's holdings approved the latest proposal. However, by April, divisions emerged within AHG, with two holders representing about 15% of outstanding notes agreeing to the plan, while four remaining holders with about 10% of shares expressed dissatisfaction and indicated interest in pursuing liquidation proceedings against the company.