**Real Estate Company Sells Tourism Assets Worth 3 Billion Yuan**
Real estate developer Jiayue Real Estate Limited (Jiayue Real Estate) announced on July 23 that they have reached an agreement to sell their two major tourism projects for a total of 3 billion Chinese yuan to Xincheng Capital’s Xincheng Capital. In the current downturn of China’s real estate industry, many real estate companies are forced to divest non-core businesses and focus on their main real estate operations.
According to the disclosure document released by Jiayue Real Estate on the 23rd, the buyer will acquire the target assets for a total price of 3 billion yuan as part of the equity transfer agreement between Henan Zhongyuan, Yilu Youxi (jointly referred to as “Jiayue Fang”), the buyer, and the target company.
The sale is expected to result in a book loss of approximately 1.216 billion yuan. After the 3 billion yuan consideration is placed in escrow, priority repayment of the outstanding liabilities of the target amount to approximately 1.374 billion yuan. After deducting taxes and other costs, the actual net inflow to the group is approximately 705 million yuan, designated for project completion and debt restructuring.
Jiayue Real Estate explained that the decision to sell the two projects was motivated by the fact that over 90% of the group’s revenue currently comes from real estate development, with tourism being a non-core business. Disposing of these assets will enhance the company’s liquidity, allowing them to concentrate their financial and managerial resources on core real estate development operations.
As a long-standing real estate enterprise, Jiayue Real Estate generated a total property contract sales amount of 3.755 billion yuan in the first half of 2026, a 15.5% decrease from the previous year. The total area of contracted sales was 567,900 square meters, reflecting a 19.8% decrease year-on-year. In June alone, the sales revenue was 839 million yuan, down by 20%, with a contracted sales area of 124,200 square meters, representing a 22.4% decrease.
In 2025, Jiayue Real Estate recorded a revenue of 11.817 billion yuan, a 26.5% decrease from the previous year, with a loss of 3.045 billion yuan.
Despite the significant decline in revenue, Jiayue Real Estate is burdened with substantial debt. As of the end of 2025, the company’s total liabilities were around 103.467 billion yuan, total assets were approximately 94.901 billion yuan, and the net owner’s equity under consolidation was -8.564 billion yuan, indicating insolvency. Additionally, the liquidity gap is severe, with short-term bank loans, other borrowings, and offshore senior notes totaling around 22.4 billion yuan due within a year, while the year-end cash and cash equivalents stand at only around 420 million yuan, signifying a serious imbalance in cash-to-short-term debt ratio.
The sale of tourism assets serves as a direct measure to mitigate these challenges. Although the net inflow of 705 million yuan from this transaction is limited compared to the massive debt of over 100 billion yuan and short-term debt of 22.4 billion yuan, it is insufficient to completely alleviate the pressure of the large debt and near-term debt repayment crisis. However, it can boost operational cash flow, repay some debt, facilitate debt restructuring, and fundamentally divest from loss-making entities, effectively reducing the company’s burden.
Overall, in the continuing downturn of China’s real estate industry, many real estate enterprises are compelled to divest non-core businesses and refocus on their main real estate operations.
According to Tencent Finance on July 24, during the past real estate boom, many real estate companies diversified their operations. The “real estate + tourism” model became a popular strategy among leading real estate enterprises such as Rongchuang and Fulai, aiming to create a second growth curve. However, after the industry experienced a significant decline in 2021, ensuring cash flow security, reducing debt, and ensuring project completion have become the sole core objectives for real estate enterprises. Currently, companies like Rongchuang have successively divested non-core tourism assets and returned to their core real estate development operations.
Leading real estate firm Vanke has also sold its pig farming business. On April 29, Vanke announced the listing transfer of its core pig farming assets under Huan Mountain Group for 3.29 billion yuan, exiting the farming business. Vanke stated that the development of the farming business required further investment, but the company is currently under liquidity pressure, making it difficult to support the expansion of this business.