Cinda Real Estate (600657.SH) plans to allocate billions of dollars to participate in the real estate distressed asset fund to revitalize existing assets and strategically transform into a real estate resource integration business.

Cinda Real Estate (600657.SH) announced that the company, along with CHINA CINDA Asset Management Co., Ltd. (referred to as "CHINA CINDA") and Xinshenglibao Equity Investment Co., Ltd. (referred to as "Xinshenglibao"), jointly initiated the establishment of a distressed asset relief and revitalization fund in the real estate industry. The total subscribed capital of the fund is 20.01 billion yuan, with the company subscribing 10 billion yuan as the subordinated general partner of the fund. The fund will mainly invest in distress relief for problem enterprises in the real estate industry, revitalization of problem projects, participation in bankruptcy reorganization, foreclosure, and other special investment opportunities to support project delivery and construction of major engineering projects. It is reported that this joint investment initiative is one of the significant measures for the company to practice the political and people-oriented aspects of financial and real estate work, promote risk resolution and healthy circulation in the real estate industry, and is an important step towards the strategic transformation of becoming an integrated resource operator in the real estate sector. It aims to address the distress needs of companies in the real estate sector and its upstream and downstream industries, utilize the functional advantages and resources of the company's related parties, expand project opportunities, revitalize existing assets in the industry, optimize the company's investment structure, and innovate business and profit models. After the fund is revitalized and the company makes its actual contributions, it will be included in the company's consolidated financial statements. The company will be responsible for the post-investment management of specific relief projects. This joint investment will not have a significant impact on the company's future liquidity, and future operating results will depend on the performance of the investment projects.