Chongqing Yubei expropriated the land of Changan Automobile Yubei factory and gave it 2.558 billion yuan.

On December 18th, Chongqing Changan Automobile Co., Ltd. issued an announcement on the disposal of land and house assets of Yubei factory and the signing of the expropriation agreement. According to the announcement, Changan Automobile intends to sign the Agreement on Expropriation of Houses on State-owned Land in Yubei District of Chongqing with the Housing Construction Committee of Yubei District. It is estimated that the total amount of compensation for this expropriation is RMB 2,558.18 million, and the final compensation amount is subject to the expropriation agreement formally signed by both parties.

Due to the need of public interest, according to the Regulations on Expropriation and Compensation of Houses on State-owned Land, Regulations on Expropriation and Compensation of Houses on State-owned Land in Chongqing and Detailed Rules for the Implementation of Regulations on Expropriation and Compensation of Houses on State-owned Land in Chongqing, the People’s Government of Yubei District of Chongqing plans to expropriate the land, overground houses and related ancillary assets of Chongqing Changan Automobile Co., Ltd. (hereinafter referred to as "Changan Automobile") located at No.579 Airport Avenue in Yubei District of Chongqing. The expropriation department is housing and urban and rural construction in Yubei District of Chongqing.

Changan Automobile held the 33rd meeting of the 9th Board of Directors on December 17th, 2024, and deliberated and passed the Proposal on Disposal of Land and House Assets of Yubei Factory and Signing the Expropriation Agreement, agreeing that the Company and the Housing Construction Committee of Yubei District should sign the above agreement.

It is reported that the assets expropriated this time are the land, above-ground houses and related ancillary assets of Changan Automobile located at No.579 Airport Avenue, Yubei District, Chongqing. There are 100 assets in total, of which the building area is about 239,800 square meters, the plot ratio is less than 1 and the land use right area is about 212,300 square meters. By the end of October 2024, the original book value of assets was about 714.79 million yuan, the net book value was about 267.91 million yuan, and the provision for impairment was about 30,000 yuan, with a book value of about 267.88 million yuan.

Chongqing Wanhe Assets Appraisal Real Estate and Land Appraisal Co., Ltd., a third-party agency, was entrusted by the Housing Construction Committee of Yubei District to appraise the expropriated land, overground houses and related affiliated assets. According to the Assets Pre-Appraisal Report (H.W.H.Y. (Chu) 2024 Zi No.002), taking November 21st, 2024 as the base date, the appraisal results of the structures to be expropriated this time were taken as the appraisal conclusion, and the pre-appraisal value was about 49.89 million yuan. According to the Report on Pre-evaluation of Real Estate Appraisal (H.W.H.F.Z. Pre-evaluation (2024) No.005), taking November 21st, 2024 as the base date, the appraisal result of the house to be expropriated this time is based on the income method, and the appraisal result of the land to be expropriated is based on the market comparison method, with a total pre-evaluation value of about 1,963.93 million yuan. The final evaluation value is subject to the official report issued by the third party organization.

The compensation collected this time is a comprehensive compensation fee, totaling 2,558,179,368.29 yuan. Comprehensive compensation fees include housing value compensation fees, single-family early signing incentive fees, guidance incentive fees, single-family scheduled relocation incentive fees, facilities and equipment compensation fees, loss compensation fees for production and business suspension, decoration compensation fees, etc.