Zhitong Financial APP News, Dichen Development International (00262) announced that on August 7, 2023, Haikou Longhua District City Investment Holdings Co., Ltd. intends to acquire all shares of Jiangyu Real Estate (Hainan) Co., Ltd. and Hainan Fudi Business Management Co., Ltd., respectively from the company's indirect wholly-owned subsidiaries Jiangyu Co., Ltd. and Hainan Fudi Business Management Co., Ltd., with a total consideration of RMB 385 million.
These target companies own target property 1 and target property 2 respectively, which are commercial properties located in luxury Court in Asia, with a total floor area of about 37383 square metres. Target property 2 has been held for the Group's interests under a contractual arrangement since 2022. The Group therefore has an interest in the consideration of the proposed sale of item 2.
The Board is of the view that the proposed disposal will allow the Group to realise the investment in the target properties, optimize the allocation of resources to develop its existing business and ╱ or invest in other business opportunities, enhance its financial flexibility and reduce its asset-liability ratio, which is conducive to the Group's ability to manage risks and achieve long-term sound development, and will benefit the Group and shareholders as a whole.