After introducing Longfor's agency construction, Yufazhan took over the 15-year unfinished project at Huanggedu for 225 million yuan

Nearly a year after introducing Longfor as the construction manager, the original Jiangwan International project in Nan'an District, Chongqing, has changed ownership once again.

On July 17, Chongqing Yukaifa Co., Ltd. issued an announcement, proposing to acquire 51% equity of Huangge Wandu Company under its related party Hengcheng Rongzhi for 225 million yuan in cash.

The acquisition target, Huangge Wandu Company, took over the land of Huangge Du (Jiangwan) Phase I at the beginning of this year and simultaneously undertook the development and construction of the project.

It is understood that the project was once planned to build "the world's tallest twin skyscrapers and a high-altitude commercial street", but it was suspended and left unfinished for nearly 15 years for some reasons. Until 2023, state-owned capital entered the market to launch the revitalization, and in 2025, Longfor's construction management brand Longfor Zhizao was introduced, repositioning the project as Huangge Du CAZ Central Activity Zone, intending to build a high-quality comprehensive community.

Yukaifa pointed out in the announcement that the project is located in the core riverside section of Nanbin Road, which is a scarce high-quality asset in the core area of "Two Rivers and Four Banks". This acquisition transaction is an important layout for the company to optimize land reserves in the core area and fill the gap of high-end residential products in the core area of the main urban area.

"Past and Present"

The Huangge Wandu Company acquired by Yukaifa this time holds the land of Huangge Du (Jiangwan) Phase I. This plot is located on the east side of the south end of the Yangtze River Bridge on Nanbin Road, Nan'an District, belonging to the core area of the Bayu Twelve Sceneries "Huangge Evening Ferry".

In 2008, Hong Kong-funded real estate enterprise China Properties Group expanded its business territory to the Chinese mainland, established Chongqing Jiangwan Real Estate Co., Ltd. in Chongqing, and won the plots D4-7-1/02 and D4-7-2/02 of Chongqing Nanping Group D Division with a premium rate of 13.39% at a price of 470 million yuan. The construction scale of the plot is 520,000 square meters, the land nature is commercial and residential land, and the project was named Jiangwan International.

At that time, the Jiangwan International project was planned as "the world's tallest twin skyscrapers and a high-altitude commercial street", but the original scale may not be sufficient to support this planning blueprint. One year after acquiring the land, the actual controller of the enterprise, Wang Shizhong, submitted three project planning concept plans to the Chongqing Municipal People's Government, applying to increase the construction scale of the project to 1.4 million square meters.

By 2010, the Chongqing Municipal Government approved the above expansion application, incorporating 15,200 square meters of land of the former Xing'ao Underwater World and 29,800 square meters of land reserved by Chongqing Chengtou into the Jiangwan International project for unified overall planning and development.

After this adjustment, the total land area of the Jiangwan International project increased to 139,300 square meters, and the total above-ground construction scale was 1.4 million square meters. At the same time, the two parties revised the land transfer agreement, the total land transfer price of the project was raised from the initial 470 million yuan to 1.288 billion yuan. Chongqing Jiangwan Real Estate Co., Ltd. was required to make a one-time supplementary payment of 818 million yuan in land transfer funds, and promised to start construction within one year after the signing of the agreement and complete the overall completion within five years.

However, with the debt default of China Properties Group itself, the construction of the Jiangwan International project has been delayed.

Ten years after acquiring the land, the project ushered in the second major planning adjustment. Not only was the total floor area allowed to be calculated for plot ratio greatly reduced, but also the originally planned core landmark formats such as the world's tallest twin skyscrapers and high-altitude commercial streets were all cancelled. Coupled with the height limit policy issued in China in 2021 that prohibits the new construction of super high-rise buildings over 500 meters, the blueprint of the Jiangwan project was declared to be in vain.

While the project has been stagnant and unfinished for a long time, Chongqing Jiangwan Company has also been in arrears with urban land use tax, and judicial enforcement and other matters have been accumulating. By July 2022, the company was listed as a person subject to execution by the Fifth Intermediate People's Court of Chongqing, and the total amount of execution reached 1.083 billion yuan by that time.

As the debt risk continued to ferment, in 2023, the Fifth Intermediate People's Court of Chongqing officially issued a judicial auction announcement to publicly dispose of the land use right of the Jiangwan International project, seeking a new transferee for the project plot that had been shelved for more than ten years.

After nearly 15 years, the value of this plot has increased nearly ten times compared with the initial land acquisition cost, but the road to judicial auction has been full of setbacks. That year, the project was listed for auction five times in a row, during which it encountered multiple situations such as auctions failing and listing being suspended. The starting price of the auction was also reduced from the initial 4.934 billion yuan to 3.948 billion yuan, and it was finally successfully sold in the fifth round of listing.

It was not until the fifth round of listing that the plot was sold under the backing of Chongqing Chengtou. Industry analysis shows that under the background of in-depth adjustment of the property market, the initial starting threshold of the plot is relatively high, and most private real estate enterprises are unable to undertake large-scale assets and legacy risks. It is a reasonable choice in line with the current market situation for local state-owned Chengtou platforms to step in for relief and revitalize the stock of unfinished projects.

Asset Inflow and Outflow

After the state-owned capital took over, the Jiangwan International project, which had been shelved for more than ten years, entered the revitalization and restart stage as a municipal key urban renewal project - the Huangge Du project.

According to the data, in August 2025, the project officially signed an agreement to introduce Longfor Group to be responsible for construction management and sales on behalf of others, positioning it as the Huangge Du CAZ Central Activity Zone, including residences, TOD, riverside commerce, parks and other contents. In November of that year, Chongqing Construction Engineering was officially introduced to carry out the construction of the project.

Specifically, the plots such as D4-7-1 of Nanping Group, Nan'an District, Chongqing adopt the EPC general contracting mode. The project covers an area of about 225 mu, with a construction area of about 760,000 square meters, and the project is implemented in phases.

Among them, the first phase of the project covers an area of about 30 mu, with a construction area of about 100,000 square meters, and the residential building height is about 198 meters, which is mainly high-quality residences, supporting commerce and garages.

From the perspective of the construction schedule, the first-phase project needs to complete the main construction of the sales department on August 5, 2026, and complete the construction of the two towers to half of the main body (the pre-sale node) on November 20 and December 10 respectively. It is expected to meet the delivery conditions by the end of 2028.

After Chengtou's backing, the project ushered in a change of ownership again. As early as the beginning of this year, Hengcheng Rongzhi, a wholly-owned subsidiary of Chongqing Chengtou, contributed the land of Huangge Du (Jiangwan) Phase I at an assessed price of 406 million yuan and transferred it to its wholly-owned subsidiary Huangge Wandu Company.

Now, Hengcheng Rongzhi is transferring 51% of the equity of Huangge Wandu Company to Yukaifa for a consideration of 225 million yuan.

According to the announcement, within 5 working days after the signing of the agreement, Yukaifa needs to pay 30% of the transfer price, and after acquiring 51% of the equity of Huangge Wandu Company, it needs to provide 14.2535 million yuan in financial assistance to Huangge Wandu Company according to its shareholding ratio, which is specially used to repay other payables owed to Hengcheng Rongzhi Company.

Yukaifa said that the project is located in the core riverside section of Nanbin Road, which is a scarce high-quality asset in the core area of "Two Rivers and Four Banks", and can fill the gap of the company's high-end residential products in the core area of the main urban area.

According to the overall renewal plan of the project, in the first phase of 2028, the construction of about 300 meters of commercial streets and high-quality residences will be completed, and high-quality educational supporting facilities will be introduced; in the medium term, the canyon commercial street will be fully connected, the cliff park will be open to the public and the residences will be delivered, and the first round of renewal and construction of the area will be basically completed; in the long term, we will continue to improve commercial supporting facilities, upgrade the functions of the area, build a riverside activity area with complete functions, and complete the renewal of the regional urban interface.

It is worth mentioning that Yukaifa's own operating situation is not optimistic. Previous announcements revealed that in the first half of 2026, Yukaifa is expected to record a negative net profit, with an estimated loss range of 3.5 million to 7 million yuan, while the net profit in the same period of the previous year was 193 million yuan.

Regarding the year-on-year decline in net profit in the first half of the year, Yukaifa said that it was mainly due to the fact that the company transferred 1% of the equity of its subsidiary in the same period of the previous year, lost control, and re-measured the remaining equity at fair value at the consolidated level and confirmed an investment income of 240 million yuan.

If we look at a longer time horizon, although the company turned losses into profits in 2025, it benefited from the contribution of non-recurring gains and losses. That is to say, excluding this influencing factor, Yukaifa's business operations have not yet had a strong profit-generating capacity.

The unfinished project has now entered the right track of development. With the injection of high-quality assets and the endorsement of the Longfor brand, it is still uncertain whether the planning of the Huangge Du project can realize returns and boost Yukaifa's performance.

This article is from the WeChat official account "Viewpoint", the author is Viewpoint New Media, and 36Kr is authorized to release it.