[ET Net News Agency, 12 February 2018] ZTE Corporation (00763) said Shenzhen Vanke Real
Estate Co., Ltd., a subsidiary of China Vanke (02202), agreed to provide services to ZTE
in relation to the development and construction of properties in a parcel of land in the
Shenzhen Bay Super Headquarters Base, Nanshan District, Shenzhen, the PRC; the sale of the
commercial properties of 35,000 square metres and the hotel properties of 20,000 square
metres to be constructed by Vanke Real Estate; and the operation of the office properties
of 44,200 square metres and the premises for cultural facilities of 6,100 square metres to
be constructed by Vanke Real Estate.
Vanke Real Estate undertook that the total amount of capital expenditure for the
development and construction of properties in respect of the Nanshan land (excluding
service fees) shall be no less than Rmb1,709 million and shall not exceed Rmb1,899
million. Vanke Real Estate undertook that the aggregate sale price of the
available-for-sale properties shall be no less than Rmb4,750 million (excluding
value-added taxes). Vanke Real Estate shall pay Rmb2,515 million (excluding value-added
taxes) to ZTE as the consideration for obtaining the right to operate the entrusted
properties.
It is expected that the Group will record a profit before taxation of about Rmb2,723
million in aggregate (subject to the audited financial statements of the Group) upon
completion of the transactions. (HL)