Yancheng Herong Property Development Limited announced that it has entered into letter of intent with new investor Applied Development Holdings Limited (SEHK:519) for private placement of common shares for gross proceeds of CNY 150,000,000 on January 10, 2017. The investor will invest directly or through its subsidiaries. On closing of the transaction, the investor will hold 75% stake in the company. The final gross proceeds is subject to further negotiations. The transaction is subject to approval of regulatory authority, board of the investor, and shareholders of the investor.