JOY CITY PPT (00207): Consumer infrastructure REIT listed separately on the Shenzhen Stock Exchange

JOY CITY PPT (00207) announces the spin-off proposal and the listing of the consumption infrastructure REIT on the Shenzhen Stock Exchange. All prerequisites for the spin-off have been met, and the Huaxia Grandjoy Holdings Group shopping center closed-end infrastructure securities investment fund (REIT) was listed on the Shenzhen Stock Exchange on September 20, 2024, with the trading code 180603.SZ. The REIT issued a total of 1 billion shares, with a final offering price of RMB 3.323 per share. Based on the final offering price, the estimated total proceeds from the proposed listing are approximately RMB 3.23 billion. After deducting the amount subscribed by the Group for the fund, as well as estimated costs and taxes, the Group is expected to net approximately RMB 1.66 billion from the proceeds received from the spin-off. These estimates are based on information available as of the date of this announcement and are for illustrative purposes only. The project company (an indirect wholly-owned subsidiary of the Company) has subscribed to 40% of the total issued shares as a strategic investor. Following the completion of the spin-off, the Company's indirect equity interest in the project will decrease from 100% to approximately 40%, and the financial performance of the project will no longer be consolidated in the Group's financial statements. The establishment and spin-off listing of the REIT provides the Company with an alternative equity financing method, diversifying the Group's financing methods and platform. Through the spin-off, the Company will be able to realize the value of mature properties, enhance its rolling investment capability and the sustainable operational capability of the project, benefiting the Company's long-term performance. Additionally, the spin-off provides the Group with the opportunity to enhance its image, expand its brand influence, and strengthen its ability to attract strategic investors.