Rongsheng development failed to pay on time 100 million deposit was confiscated by the Land Bureau

NetEase Finance July 5 News of the development of the midday in Shenzhen stock Company issued a notice that the wholly owned subsidiary of Nanjing Rongsheng Real Estate Co., Ltd. (hereinafter referred to as "Nanjing Rongsheng") received Nanjing Land and Resources Bureau "on the lifting of no.2007g83 land transfer Contract Notice" (hereinafter referred to as "notice"),　　said that because Nanjing property failed in accordance with the contract agreed to clear all the land transaction price, the bureau lifted the Nanjing Rongsheng no.2007g83 block (Xian Lin plot) of the land transfer contract, 106.5 million Yuan deposit is non-refundable. It is reported that December 6, 2007, Nanjing Rongsheng to 710 million Yuan Qixia District Xian Lin Xian Lake West, Xian Lin Avenue North C2 Plot (number: no.2007g83) of the transfer of land use rights, the same year December 19 with the Nanjing Land and Resources Bureau signed the contract (Ning Land Capital to make the agreement ( 2007)435). According to the contract of assignment, Nanjing Rongsheng should clear the whole price before June 17, 2008.　　At present, the total payment of the transaction price of 284 million yuan, there are still 426 million yuan unpaid. The development of Rongsheng said that, since 2007, the global financial crisis and the government's macro-control of the real estate industry, the Nanjing market of residential turnover and transaction prices in 2008 showed a significant decline.　　After careful calculation, 2008, 2009, respectively, the company on the Nanjing Xian Forest plot to reduce the value of 56.55 million yuan, 3.1459 million yuan, a total of 59.6968 million yuan for the reduction of value. According to the "notice", the release of the land contract, Rong Sheng Development will lose 106.5 million yuan deposit.　　The development of Rongsheng has been in the 2008 and 2009 for the above plots cumulative value of the proposed reduction of 59.6968 million yuan, and expected the event will affect the development of the 2010.5 annual performance of 46.803 million yuan. Rongsheng Development said the issue would not change the company's forecasts for the 2010.5 annual results, as the company had anticipated the potential impact of the plot in the first half of 2010. The company believes that the lifting of the land lease contract is a rational decision based on market judgment, the company in the recovery has paid 284 million yuan in the remaining part of the land price, will be to more potential plots.