CNLP Announces Allotment and Issue of New Shares Subscribed by JD.com

Pursuant to the Subscription Agreement, the Company has conditionally agreed to allot and issue, and JD Subscriber has conditionally agreed to subscribe for, 321,068,999 subscription shares, which represents approximately 10.99% of the existing issued share capital of the Company and approximately 9.90% of the issued share capital of the Company as enlarged by the allotment and issue of the subscription shares. The subscription price of HK$2.80 per subscription share represents a premium of approximately 5.66% to the closing price of HK$2.65 per share as quoted on the Stock Exchange on April 27 and a premium of approximately 10.41% to the average closing price of approximately HK$2.536 per share as quoted on the Stock Exchange for the last five trading days up to and including April 26. The net proceeds from the subscription (after deducting the expenses incurred in the Subscription) is estimated to be approximately HK$898.50 million. Pursuant to the Subscription Agreement, JD Subscriber undertakes that it will not sell, transfer or otherwise dispose of the subscription shares for a period of six months from the completion of the subscription. And JD Subscriber shall have the right to nominate one candidate to be put forward for appointment to the Board as a non-executive Director.

JD is a leading technology-driven e-commerce company and retail infrastructure service provide in China, and is listed on the NASDAQ (stock code: JD). JD is a member of the NASDAQ100 and a Fortune Global 500 company. As of December 31, JD operated 7 fulfilment centres and 486 warehouses across China.

Over recent years, the demand of the premium logistics facilities leasing market in China continued to maintain a strong momentum, the demand of the e-commerce, retailers and 3PL has become a main driving force for the advanced logistics facilities sector, taking a leading position in the leasing market. JD Subscriber and its affiliates are currently one of the Company's major tenants of the logistics facilities operated by the Group. The Board considers that the investment by JD Subscriber will enable the Company to further expand its business coverage, optimize site selection and network establishment, and ensure a high occupancy rate. Meanwhile, the fund generated from the allotment and issue of the subscription shares will improve gearing ratio and ensure sufficient liquidity.

Mr. Li Shifa, Chairman and President of CNLP, said, "as a leading e-commerce and retail company in China, JD is one of the Group's largest client. The subscription by JD provides funds for the Group's development, broadens the shareholders' base, and is in the interests of the Group and the shareholders as a whole. Subscribing the Company's shares at a premium and promising a lock-up period of six months shows that JD is full of confidence in the Company's prospect. Furthermore, entitled the right to nominate the appointment of one director indicates JD's resolution to develop coordinately with the Group. JD's strengths in e-commerce and retail industry will provide a wider platform for the Group's future development. Entering into the Subscription Agreement will help the Group's development in logistics infrastructure, further consolidate advantageous leading position in the market, as well as improve JD's core competitiveness in logistics supply chain, thus to realize synergetic development."

About China Logistics Property Holdings Co., Ltd.CNLP was one of the first pioneering entrants into China's logistic facilities market with an undivided focus on China. The Group offers three types of logistic facilities that catering to the specific needs of tenants, including standardized logistic facilities, BTS logistic facilities and sale-and-leaseback logistic facilities. According to the statistical report issued by DTZ, from the perspective of ranking in respect of total interested GFA, CNLP is the second largest supplier of premium logistics facilities in the Chinese market. As one of the leading enterprises in the industry, China Logistics Property has over 15 years of experience in development and operation of premium logistics facilities and is advantageous in terms of business mode, asset size, operation quality, team capability and development potential. As at 31 December 2017, the area of logistics facilities portfolio held by the Company reached 3.1 million sq.m, and the Company had 130 logistics facilities in operation in 27 logistics parks, located in logistics hubs in 14 provinces or centrally administered municipalities.

Topic: Press release summarySectors: Daily Finance, Daily News^[1][2] http://www.acnnewswire.com From the Asia Corporate News Network

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References

1. ^{^} Daily Finance (www.acnnewswire.com)
2. ^{^} Daily News (www.acnnewswire.com)