Sany Heavy Equipment (HKG:0631) has entered into JV articles with connected person Shenyang Zhu Sheng Yuan Co., Ltd. for joint establishment of Shenyang Zhong Jing Real Estate Development Co., Ltd. (Zhongjing Real Estate), which will be engaged in real property development, sale of commercial housing and leasing self-owned properties based on demand for housing by the Sany group's employees.

Pursuant to the JV articles, Sany shall contribute 51% of the RMB 238.4 million registered capital of Zhongjing Real Estate and Shenyang Zhu Sheng Yuan shall contribute 49% of the registered capital.

Sany expects to transfer certain parcel(s) of land in Economic and Technological Development Zone Shenyang City with a total area of 72,899 square metres to Zhongjing Real Estate as capital contribution.

Sany says that, while the core business of its group does not include real estate development, the group entered in the JV articles to accommodate the demand of the group's employees at the Sany Coal Mining Equipment Industrial Park, which is located in Shenyang City, by providing them with residential housing nearby. As the Sany Coal Mining Equipment Industrial Park is located at a relatively remote area, where the basic necessities of living and other supporting facilities are limited, it is inconvenient to the Sany group's employees who work there and therefore important for the group to accommodate housing needs for these employees.

Source:chinesestock.org