New City Development clarifies Haizhu land requisition talks, cites RMB 525 million compensation plan

• New City Development Group issued a supplemental clarification on the Haizhu District land requisition affecting its Guangzhou Changliu Industrial Park, citing latest negotiations that pointed to compensation of RMB 525 million, excluding demolition costs.
• It said no legally binding land requisition agreement has been signed, with the Haizhu District government indicating on Feb. 5, 2026 that internal multi-department approvals were still in process with no set timetable.
• The board accepted a proposal from tenant Guangdong Changna and partners for RMB 180 million compensation to be paid via one-year notes carrying 4% annual interest, aiming to secure cooperation on site clearance and reduce litigation risk.
• The group said it received a government advance of RMB 270 million in late October 2025 earmarked for repaying bank loans to release mortgages, with advisers stating it could not be used to pay the Guangdong Changna compensation.
• Assuming compensation of HK$584 million, it estimated a net asset uplift of about 8% with liabilities falling by about HK$263 million, while warning revenue would drop about 85% if the investment properties are acquired.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. New City Development Group Ltd. published the original content used to generate this news brief via IIS, the regulatory disclosure system operated by the Hong Kong Stock Exchange (HKex) (Ref. ID: HKEX-EPS-20260520-12165765), on May 20, 2026, and is solely responsible for the information contained therein.