China Aoyuan Property (HKG:3883) has entered into a JV agreement with Panyu Information Technology Limited in relation to the establishment of a JV company.

Pursuant to the JV agreement, China Aoyuan Property injected a sum of RMB154.7 million (HK$190.4 million) by cash into the registered capital of the JV company and acquired 65% of the registered capital of the JV company.

Panyu Information Technology contributed a sum of RMB83.3 million (HK$102.5 million) to acquire 35% of the registered capital of the JV company by way of part of the value of the land use rights in relation to a piece of project land located at the east of Yingbin Road, Lirendong Village, Nancun Town, Panyu District, Guangzhou with a total site area of 59,901.1 sqm and the plot ratio of not more than 5. The project land is designated for commercial and financial uses.

Pursuant to the JV agreement, the registered capital of the JV company has been increased from RMB3 million to RMB238 million, and the parties shall develop the project land into a headquarter for intelligent industry which would comprise shops, office building, parking spaces and other ancillary facilities.