Guandao Pu'er Investment Co., Ltd. (hereinafter referred to as “the Company”) introduced a strategic partner, Shiyan Junfa Real Estate Co., Ltd. (Hong Kong) (hereinafter referred to as “Junfa Real Estate”) as the Company's shareholder and person acting in concert.
On August 1st, Guandao Pu'er Investment Co., Ltd. (LU1840650458 MLGDI) announced that Wang Yi, the controlling shareholder of the Company, and Lei Yinping, Director of the board, signed an agreement of strategic cooperation with Shiyan Junfa Real Estate Co., Ltd.
As agreed, Shiyan Junfa Real Estate Co., Ltd. will acquire 33% of shares of the listed company via a secondary market offering, making Shiyan Junfa Real Estate Co., Ltd. the largest shareholder of the Company after the equity change.
Shiyan Junfa Real Estate Co., Ltd. has promised to involve its real estate projects in Shiyan in the listed entity step by step, and will provide RMB 30 million in cash for Guandao Pu'er Investment Co., Ltd. as support.
Shiyan Junfa Real Estate Co., Ltd. was established in January 2013 with a registered capital of 80 million yuan (RMB), of which: Foshan Kejie Furniture Co., Ltd. invested 40.5 million yuan, accounting for 51%, and individual shareholder Wang Junjie invested 39.5 million yuan, accounting for 49%. Company address: No. 88, Daling Road, Shiyan City; Legal representative: Wang Junjie; Class-4 Real Estate Development Entity; Business scope: real estate development and sales; general freight; warehousing services; e-commerce; hotel management; exhibition services; cargo import and export; technology import and export; automobile and parts sales; daily necessities wholesale and retail; property management; accommodation and catering services; cultural tourism project development.
The major shareholder is Foshan Kejie Furniture Co., Ltd. of Guangdong Province, which is mainly engaged in furniture design, R&D, production and sales with more than 20 years of experience in the industry. It has developed 11 famous brands of office supplies and furniture products including Xin’an and Muchi. The office supplies are mainly exported to the Middle East. There are more than 2,200 exclusive retail stores for its furniture series in China, with an annual output of around 280 million yuan. Companies controlled by Mr. Wang Junjie include Shiyan Junfa Trading Co., Ltd., Hubei Agricultural Products Development Co., Ltd. and Shiyan Junfa Automobile Sales Co., Ltd. The total annual output of these company reaches around 600 million yuan. Investors of Shiyan Junfa Real Estate Company all enjoy good social reputation and management capabilities. Years of operation has laid a solid foundation for its business, enabling the stable investment ability and anti-risk ability. Wang Junjie, the legal representative of Junfa Real Estate, is a member of the Hubei Youth Federation, member of the Shiyan Committee of CPPCC, an outstanding Communist Party member, and the chairman of the Shiyan Research Association for the Art of Living. Since the establishment of his first company, Mr. Wang has actively participated in social welfare while developing enterprises, and has established the Junfa Charity Foundation. For more than a decade, he has provided much help for the poor and offered scholarship to students, with the total donation amounting to more than 19 million yuan, making him the "Economic Bigwig" in Shiyan City.
The Jingang·Shanggu Project developed and constructed by the company fully utilizes its rich real estate development experience and advanced management concepts, and combines the commercial real estate with Internet characteristics thus to upgrade the original business structure of Shiyan. The idea of sharing business interests will create a commercial complex that integrates online and offline business together with tourism. The project is located in Kaixuan Avenue, Zhangwan District, Shiyan City, covering an area of 52 mu （around 34,667 m2）, with a total construction scale of 150,369.55 m2 and a total planned investment of 700 million yuan. The above-ground commercial space is about 80,356.45m2. The residential area covers 9,254.53m2, and the office building area covers 17,033.40m2. The above-ground residential construction space is 6,746.17m2, with 36,979.00m2 of underground construction space (498 parking spots for Phase One and 366 for Phase Two). The planned land use property is for commercial financial services with 10~20% of residential space. The floor space ratio is 2.50, with building density <40%, greening >30%.
The project has been highly valued by the leaders of district and municipal government of Shiyan. The government has made many field investigations and special studies, providing important instructions. In 2013, Zhangwan District Government signed an investment contract with Foshan Kejie Furniture Co., Ltd. for investment promotion projects and included the project in the 2014 key investment projects of Shiyan.
The change of equity in Guandao Pu'er Investment Co., Ltd. can effectively increase the fixed assets, enrich the diversified operations and enhance the financial strength, thus to promote the sound and sustainable development of the Company.