On September 20, China Aoyuan Group Co., Ltd. announced on the Hong Kong Stock Exchange that it has introduced the Middle Eastern investment group Multi Gold Group Limited as a strategic investor. According to the agreement, Ace Rise has agreed to transfer approximately 622 million shares of the company’s common stock to Multi Gold. Following the completion of this share transfer, Multi Gold will become the largest single shareholder of China Aoyuan. Meanwhile, Guo Ziwen will no longer serve as the company’s controlling shareholder; he will be reassigned from executive director to non-executive director and will no longer hold the position of chairman of the board.

What is Multi Gold?

Multi Gold is a professional investment institution based in the UAE, with influential local family members involved in its management structure. It focuses on project investments in the Middle East and North Africa, adopting a sustainable investment style with an emphasis on social responsibility. This Middle Eastern investment group has its own unique understanding and insights into the Chinese real estate market. They believe they have sufficient patience and resources, and they are optimistic about the stable development of the Chinese real estate market in the long term. Additionally, the new investor hopes to leverage this strategic investment in China Aoyuan to recommend real estate-related products from the UAE and Middle East to potential Chinese buyers.

Alobeidli takes on the role of chairman of the board.

Mr. Alobeidli, aged 45, obtained his bachelor’s degree of management information systems from United Arab Emirates University in 2001, master’s degrees of project management and computer science from George Washington University in 2008 and 2010 respectively, a master’s degree of international business law from Panthéon-Assas University Paris II in 2020 and a master’s degree of data management and artificial

intelligence from ESCP Business School in 2022. He also completed the “Impactful Leaders Program” in Mohammed Bin Rashid Center for Leadership Development in 2020. Mr. Alobeidli continues to pursue his academic excellence by currently taking an executive master of business administration program in Georgetown University. Mr. Alobeidli has over two decades of experience across multiple industries, including technology, real estate and strategic consulting. Since 2023, he acts as the general manager of Magnuvest Investment, which has participated in several real estate projects in the United Arab Emirates. He served as the chief executive officer of M5 Telecom and M5 Consultancy between 2001 and 2015 and between 2015 and 2023 respectively.

China Aoyuan, an established Guangdong-based real estate company, was founded in Guangzhou in 1996 and saw its sales surpass 100 billion yuan for the first time in 2019. In March of this year, China Aoyuan released its full-year performance report for 2023, showing total revenue of approximately 27.533 billion yuan, a year-on-year increase of 47.1%. However, it recorded a loss of 9.641 billion yuan, with a loss attributable to shareholders of 9.534 billion yuan. With strong support from domestic and foreign creditors, China Aoyuan successfully extended domestic standardized public debt products and restructured its overseas debt, meeting all restructuring conditions by March 20, 2024, when the overseas restructuring plan took effect.

In its half-year report for 2024, released the same day, the company reported a profit attributable to shareholders of approximately 22.312 billion yuan for the first half of the year (turning a profit year-on-year), primarily due to gains from the overseas debt restructuring. The report indicated that total revenue for the first half was around 4.734 billion yuan, a year-on-year decrease of 56.7%. Revenue from property development, hotel operations, and property investment accounted for 84.4%, 13.7%, and 1.9%, respectively.

In the first half of the year, the company's revenue from property sales was approximately 3.994 billion yuan, a year-on-year decrease of 56.9%. The total floor area of delivered properties fell from 1.15 million square meters in the same period last year to 410,000 square meters, a decrease of 64.3%. The gross loss for the first half was about 203 million yuan, a year-on-year reduction of 127.4%, with a gross loss margin of 4.3%. Other income and losses mainly included gains from the completion of the overseas debt restructuring of approximately 26.638 billion yuan and a net loss of about 30.4 million yuan.

Regarding stock performance, the latest share price of China Aoyuan is HKD 0.21 per share, with a total market capitalization of approximately HKD 793 million.

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