Listed company Dayue City (a subsidiary of China National Cereals, Oils and Foodstuffs Corporation, with the State-owned Assets Supervision and Administration Commission as the controlling shareholder) announced on the evening of December 3 that its holding subsidiary Wuhan Di Yue has filed an administrative lawsuit against the Caodian District Natural Resources and Urban-rural Development Bureau of Wuhan City, to resolve a six-year-long land delivery dispute. The case has been accepted for filing, with the total amount involved exceeding 1 billion yuan.
The core dispute of this lawsuit dates back to the end of 2019 when Wuhan Di Yue acquired the land for the Zhongliang Xiangyun Metro Town project. The announcement stated that despite Wuhan Di Yue having fully paid the land transfer fee and related taxes, the Caodian District Urban-rural Development Bureau has failed to deliver the land in accordance with legal requirements, leading to the land being continuously occupied and causing a standstill in the entire project construction process.
Some of the main claims made by Wuhan Di Yue in the lawsuit include: terminating the “State-owned Construction Land Use Rights Transfer Contract” related to undeveloped land; requesting the refund of approximately 361 million yuan corresponding to the undeveloped land transfer fee; seeking compensation for various losses, including opportunity costs, amounting to about 713 million yuan; and demanding compensation for taxes and ancillary fees paid totaling approximately 22 million yuan. The total amount of the lawsuit adds up to around 1.096 billion yuan.
Dayue City’s business performance in Wuhan presents a stark contrast. The Wuhan Dayue City commercial project in the Optics Valley has shown remarkable performance, with a total of 23.5 million visitors in 2024 (a 17.5% increase year-on-year) and sales reaching 1.59 billion yuan (a 13.6% increase year-on-year). However, the land in Caodian District, crucial for the development of residential and commercial complexes, has been stagnant for six years due to land delivery issues, contrasting sharply with the thriving development of its commercial projects.
Dayue City is a real estate company under the Central Enterprise China National Cereals, Oils and Foodstuffs Corporation.
As of the closing on December 3, Dayue City’s stock price stood at 3.1 yuan.
By the end of the third quarter of this year, Dayue City achieved a revenue of 20.648 billion yuan, with a net loss attributable to shareholders of 533 million yuan.