Amid the ongoing correction in the real estate sector, a Shenzhen state-owned listed property developer is accelerating the disposal of legacy assets.

On September 24, Shenzhen Zhenye (Group) Co., Ltd. (referred to as "Shenzhen Zhenye") issued an announcement regarding the proposed sale of assets, declaring plans to sell off multiple self-owned properties in core areas of Shenzhen as a package.

Second Listing This Year to Accelerate Activation of Legacy Assets

According to the announcement, in order to further activate legacy assets and effectively improve asset allocation efficiency and utilization benefits, the board of directors of Shenzhen Zhenye approved the public listing and transfer of six self-owned properties in the Shenzhen area through the Shenzhen United Property and Equity Exchange (referred to as the "Exchange").

The properties proposed for sale include: Zhenye Meiyuan Comprehensive Building First Floor, Zhenye Meiyuan Comprehensive Building Second Floor, Baoli Building Podium Second Floor, Baoli Building Podium Third Floor, Xinghai Mingcheng Group One Shops Meat and Vegetable Market First Floor, and Xinghai Mingcheng Group One Shops Meat and Vegetable Market Second Floor.

The total area of the properties proposed for sale is 8,410.10 square meters, with a combined initial listing price of approximately 169.7 million yuan.

It is worth noting that this is not the first time Shenzhen Zhenye has listed assets for sale this year. Previously, on June 1, Shenzhen Zhenye announced plans to transfer five self-owned properties through the Exchange, with a combined listing reserve price of approximately 150.7 million yuan.

As of now, among that batch of assets, the "Xinghai Mingcheng Phase III Kindergarten entire building" has been sold at a reserve price of 44.7036 million yuan, while the remaining assets that failed to complete transactions have been reincluded in the September listing.

In fact, this asset "slimming" initiative had early signs. According to public reports, as early as October last year, a bidding website announcement showed that Shenzhen Zhenye had commissioned a third-party institution to publicly solicit transfer intentions for self-owned properties located in core areas such as Futian and Nanshan in Shenzhen, covering various property types including commercial, office, and kindergarten.

This move was interpreted by the market at the time as "preparation for a packaged sale."

Regarding this sale, Shenzhen Zhenye stated that transferring assets through public listing can activate legacy assets, accelerate capital recovery, enhance overall operational efficiency, effectively supplement the company's working capital, optimize its capital structure, and improve capital utilization efficiency, in line with the company's long-term development strategy.

The company stated that the transaction does not harm the legitimate rights and interests of the company and all shareholders, especially minority shareholders, and will not have an adverse impact on the company's normal production and operations.

The announcement also noted that the asset sale will be conducted through public listing on the Exchange, and there is uncertainty regarding the counterparty, transaction price, and impact on the company's current period profit and loss.

First-Half Revenue and Profit Under Pressure, Commercial Asset Operations Diverge

From a financial data perspective, Shenzhen Zhenye's current cash flow chain is not particularly tight.

According to its previously disclosed semi-annual financial report, the company's net cash flow from operating activities in the first half was 444 million yuan. Although this represents a year-on-year decline of 38.96%, it still maintained a net inflow status and can cover some daily rigid expenditures.

As of the end of the reporting period, the company's total assets were 15.986 billion yuan, and the net assets attributable to shareholders of the listed company were 5.266 billion yuan.

However, on the profit side, the company's performance is facing significant pressure. In the first half, Shenzhen Zhenye achieved operating revenue of 796 million yuan, a sharp year-on-year decline of 57.7%; net profit attributable to the parent company showed a loss of 95.7314 million yuan, with the loss scale expanding by 34.88% year-on-year.

The company explained that the revenue decline was mainly due to a reduction in the scale of projects completed and delivered with revenue carried forward.

Beyond the overall revenue decline, the operational performance of the listed properties themselves also varies, which may be the practical motivation driving Shenzhen Zhenye to optimize its asset allocation.

Among the projects proposed for transfer, there are both Luohu Baoli Building Podium and Zhenye Meiyuan with 100% occupancy rates, as well as other Nanshan Xinghai Mingcheng properties with occupancy rates of only 63.83%.

Overall, in the first half of this year, Shenzhen Zhenye's property leasing revenue was approximately 51.0711 million yuan, a year-on-year decline of 12.85%, accounting for only 6.41% of total operating revenue.

This reflects that some assets have low occupancy rates, and the overall contribution of commercial operations is limited and no longer able to generate stable and substantial cash flow.

"Commercial properties often tie up large amounts of capital and have long return cycles," an industry insider analyzed, noting that for a state-owned real estate enterprise, against the backdrop of overall pressure in the current real estate market and cash flow being the lifeline of the enterprise, holding a large number of non-core commercial properties can bring some rental income but also locks up substantial capital.

Therefore, Shenzhen Zhenye's choice to liquidate non-core assets at this time is a rational decision. This not only optimizes the asset structure but is also likely to free up valuable space for the company's subsequent transformation and strategic positioning.