Yanlord Land Group Undertakes Major Subsidiary Moves: New Subsidiaries, Disposals, and Strategic Acquisitions in 1H 2025

Key Highlights for Retail Investors

• Yanlord Land Group establishes multiple new subsidiaries in China with 100% ownership, further strengthening its presence in construction, property, and technology sectors.
• Disposal of non-core subsidiaries in China and Malaysia, freeing up capital and streamlining operations.
• Significant acquisition of additional 30% equity interest in Xingheng (Shenzhen) Investment Management Co., Ltd. for over RMB820 million, resulting in full ownership.
• Voluntary dissolution of dormant subsidiaries and an associated company as part of business rationalization.
• No material impact expected on net tangible assets per share or earnings per share for FY2025, according to management.
• No director or controlling shareholder has a material interest in these transactions, other than through their existing shareholdings or directorships.

Detailed Breakdown of Yanlord’s Strategic Moves

1. Incorporation of New Subsidiaries

Yanlord Land Group Limited has incorporated several wholly-owned subsidiaries in the People’s Republic of China during the first half of 2025, expanding into both traditional and tech-driven segments:

• Chengdu Gusheng Zhuoyou Intelligent Engineering Co., Ltd. – Focuses on the sale of construction and decorative materials (Registered Capital: RMB500,000).
• Haikou Yanlord Real Estate Co., Ltd. – Engaged in property development (Registered Capital: RMB1,000,000).
• Jinan Yanlord Meijia Engineering Technology Co., Ltd. – Handles construction engineering, equipment installation, and design (Registered Capital: RMB1,000,000).
• Shanghai Hengjiayuan Building Technology Co., Ltd. – Provides technical and construction engineering services (Registered Capital: RMB1,000,000).
• Tianjin Hengyuan Intelligent Technology Co., Ltd. – Specializes in lightning protection system inspection and intelligent building design (Registered Capital: RMB1,000,000).
• Tianjin Yanlord Meijia Engineering Technology Co., Ltd. – Focuses on equipment installation and construction engineering (Registered Capital: RMB1,000,000).
• Zhuhai Hengzhijian Decoration Engineering Co., Ltd. – Offers residential plumbing, electrical, and fire safety services (Registered Capital: RMB1,000,000).

All new subsidiaries are 100% owned by Yanlord, signaling aggressive expansion and diversification in construction, engineering, and property-related fields.

2. Disposal of Non-Core Subsidiaries

Yanlord has disposed of its equity interests in three subsidiaries, likely as part of a portfolio optimization and capital recycling strategy:

• Hainan Lanmeng Quality Life Service Co., Ltd. – 51% interest disposed for RMB50,000 (net liability value disposed: approx. RMB180,000).
• Nanjing Renxing Property Service Co., Ltd. – 60% interest disposed for RMB600,000 (net asset value disposed: approx. RMB843,000).
• WPSY (Malaysia) Sdn. Bhd. – 100% interest disposed for RM8,000,000 (net asset value disposed: approx. RM8,082,000).

These disposals bring in immediate cash and help Yanlord to refocus on higher-priority business segments.

3. Acquisition of Additional Equity Interest

The most significant transaction in this announcement is the acquisition of an additional 30% equity interest in Xingheng (Shenzhen) Investment Management Co., Ltd. for RMB820,220,254.03. This brings Yanlord’s total ownership to 100%. The acquisition price was based on the net asset value of the interest acquired, which stands at approximately RMB940 million as of 28 February 2025.

Additionally, Yanlord acquired a 30% stake in Haikou Yanlord Property Co., Ltd., bringing it to 100% ownership. (Details on the consideration paid for this entity were not specified.)

This full consolidation of Xingheng (Shenzhen) and Haikou Yanlord Property suggests Yanlord is doubling down on key assets in Shenzhen and Haikou, potentially enhancing control, operational synergy, and future profitability.

4. Dissolution of Dormant Subsidiaries and Associated Company

• Nantong Renyi Real Estate Development Co., Ltd. (wholly-owned, dormant subsidiary) was voluntarily dissolved.
• Hangzhou Binbai Enterprise Management Co., Ltd. (dormant associated company) was also voluntarily dissolved.

These dissolutions are part of streamlining the group structure and reducing administrative overhead.

5. Financial and Shareholder Impact

• All transactions were funded by internal resources, indicating a strong balance sheet and prudent capital management.
• Management states that these transactions are not expected to have any material impact on net tangible assets per share or earnings per share for the financial year ending 31 December 2025.
• No directors or controlling shareholders have any direct or indirect interests in these transactions, aside from their shareholding or board roles.

What Should Shareholders Watch?

While management expects no material impact on the immediate financials, the full acquisition of Xingheng (Shenzhen) Investment Management Co., Ltd. for over RMB820 million is a significant move, as it consolidates a valuable asset and could drive future growth. The disposal of underperforming or non-core subsidiaries and the establishment of new ventures in construction and technology could also enhance long-term efficiency and profitability.

Shareholders should monitor how the integration of the newly acquired entities progresses and whether the new subsidiaries begin contributing meaningfully to group earnings in upcoming quarters.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Retail investors should conduct their own research or consult a financial advisor before making investment decisions. The information is based on the latest company announcement and may be subject to change.

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