Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Live is Caixin Global's real-time news portal, featuring 24-hour breaking news, short-form analysis, and roundups from business and social media in China.

TRENDING
Foreign Teachers to be Identified Under New Government Rules
Suspected Norovirus Outbreak in Beijing Sickens Hundreds
China’s GDP Growth Dips to 6.2% in Second Quarter
LATEST
Suspected Norovirus Outbreak in Beijing Sickens Hundreds
Foreign Teachers to be Identified Under New Government Rules
Livestreaming Platform Courts Under-25s With Purchase of Networking App
Robot Maker Eyes $500 Million New York Listing
Didi Launches Open Platform to Integrate Third-Party Ride-Hailing Services
EV Startup Xpeng Faces Consumer Wrath
Missing Zhejiang Girl Found Dead After Nationwide Search
Wanda’s Sports Unit Set Price Range for New York IPO
Huawei Plans Extensive U.S. Layoffs: WSJ
China’s GDP Growth Dips to 6.2% in Second Quarter
ZTE Seeks to Cash Out of Shenzhen Property Project
Controversial Chinese Blockchain Entrepreneur Invites Trump to Buffett’s Charity Lunch
China’s Exports, Imports Fall in June
Insurance Giant Ping An Enters Online Education
Xpeng Employee Admits Uploading Tesla Source Code to His Personal Account 
Huawei Chairman Urges U.S. to Remove Company From Entity List
Migrant Women Still Aren’t Getting Help Under China's Domestic Violence Law
Could Huawei Roll Out Its Own Smart TV Soon? 
Amazon Appoints China President as Global China Chief, VP of Cloud Service
Global PC Shipments Rise as China's Lenovo Secures Top Spot
ZTE Seeks to Cash Out of Shenzhen Property Project

By Qu Hui and Denise Jia / Jul 13, 2019 06:30 AM / Business & Tech

Photo: VCG

Photo: VCG

Chinese telecom-equipment maker ZTE Corp. is seeking to cash out of its property assets to address a liquidity crisis after a $1.4 billion fine imposed last year by the U.S.

ZTE said Thursday night that it signed a supplemental agreement with property developer China Vanke Co. Ltd. in relation to the Shenzhen Bay Super Headquarters Base project. ZTE acquired the land use rights for 3.54 billion yuan ($510 million) in 2017.

The supplemental agreement expanded a previous deal reached last year under which Vanke will develop the land into a commercial complex of buildings for the office premises of ZTE and cultural facilities.

According to the terms of the land acquisition, most of the land is not transferable. Through the supplemental agreement, ZTE granted Vanke more operational rights and Vanke agreed to bear all the costs for the development and construction.

As of Thursday, Vanke had paid ZTE a total of 3.54 billion yuan, meaning ZTE has recovered the cost of the land acquisition. Vanke is also scheduled to pay an additional 1.8 billion yuan to ZTE by 2023.

The supplemental agreement will also enable ZTE to gain earnings from the project two years earlier than under the original agreement.

Cash-strapped ZTE had tried to sell two land parcels at an industrial park in Shenzhen to state-owned equity investor Shenzhen Investment Holdings Co. Ltd. in June 2018. But the deal fell apart.

Share this article
Open WeChat and scan the QR code
Copyright © 2019 Caixin Global Limited. All Rights Reserved.