China Merchants Shekou Unit Acquires 50% Stake in Shenzhen Exhibition Operator for RMB 506.5 Million
China Merchants Shekou's wholly owned subsidiary acquired a 50% stake in Shenzhen Zhaohua International Exhibition Operation Co. , Ltd. from Shenzhen OCT for RMB 506.5 million in cash, gaining operational control of Shenzhen World Exhibition & Convention Center. The deal was completed through public bidding on the Beijing Equity Exchange. The target company reported a net loss in 2025, while the exhibition center spans 1.259 million square meters.
China Merchants Shekou Industrial Zone Holdings Co. , Ltd. (001979. SZ) announced on August 31 that its wholly owned subsidiary, Shenzhen China Merchants Real Estate Co. , successfully acquired a 50% equity stake in Shenzhen Zhaohua International Exhibition Operation Co. (the Exhibition Operator) through public bidding on the Beijing Equity Exchange. The seller was Shenzhen OCT Real Estate Co. , a wholly owned subsidiary of Shenzhen Overseas Chinese Town Co. (Shenzhen OCT). The transaction was settled in cash at a price of RMB 506.5 million.
Financial data show that as of the end of 2025, Shenzhen OCT had total assets of RMB 95.991 billion, total liabilities of RMB 68.482 billion, and net assets of RMB 27.509 billion. In 2025, Shenzhen OCT recorded operating revenue of RMB 11.062 billion and a net loss attributable to parent shareholders of RMB 2.31 billion. As of the end of March 2026, Shenzhen OCT's total assets stood at RMB 92.426 billion, total liabilities at RMB 65.109 billion, and net assets at RMB 27.317 billion. For the first quarter of 2026, the company reported operating revenue of RMB 2.119 billion and a net loss attributable to parent shareholders of RMB 137 million.
The Shenzhen World Exhibition & Convention Center (Phase I) project, subject of this transaction, is located in Shajing Subdistrict, Bao'an District, Shenzhen. It comprises the exhibition center land and eleven parcels of ancillary commercial land. According to the Supervision Agreement for Construction and Operation of the Shenzhen World Exhibition & Convention Center Project (Phase I) (2021 Revision), the project adopts a "build-operate plus comprehensive development" model. The municipal government selects a social investor through public bidding for the land use rights of the ancillary commercial parcels, and the social investor is responsible for constructing the exhibition center, operating it, and comprehensively developing the ancillary commercial land. The Exhibition Operator was established specifically by China Merchants Shekou and Shenzhen OCT to operate the exhibition center project. The exhibition center covers an area of 1.2553 million square meters, with a total floor area of 1.599 million square meters and an indoor exhibition area of 400,000 square meters. Construction began in September 2016, the center was completed in September 2019, and it commenced operations in November 2019.
The Exhibition Operator was established on May 5, 2017, with a registered capital of RMB 10 million, fully paid in. It is owned equally by Shenzhen China Merchants (a wholly owned subsidiary of China Merchants Shekou) and Shenzhen OCT, each holding 50%. As of the end of 2025, the Exhibition Operator had total assets of RMB 543 million, total liabilities of RMB 652 million, and net assets of negative RMB 109 million. In 2025, the Exhibition Operator generated operating revenue of RMB 558 million, a net profit attributable to parent shareholders of RMB 41 million, and net cash flow from operating activities of RMB 199 million.
As of the date of this announcement, the 50% equity stake in the Exhibition Operator being transferred by Shenzhen OCT was under pledge. The pledgee has issued a written consent letter for the public transfer of the pledged equity. Upon the transaction agreement taking effect, Shenzhen OCT will release the pledge.