China Huirong (01290) announced that on January 16, 2024, Huifang Supply Chain, a wholly-owned subsidiary of the company, signed a pre-purchase agreement with Jiangsu Anbo; and Qingdao Wan Chen, a wholly-owned subsidiary of the company, signed a consulting service agreement with Jiangsu Anbo.
Huifang Supply Chain and Jiangsu Anbo were established: Huifang Zhongde, where 95% of the shares are held by Huifang Supply Chain and 5% of the shares are held by Jiangsu Anbo; and the purchaser is wholly owned by Huifang Zhongde to acquire Zhongzhu Plaza during the auction.
According to the pre-purchase agreement, the purchaser shall participate in the auction with a view to acquiring Zhongzhu Plaza from the Suzhou Wuzhong People's Court. On January 16, 2024, the buyer successfully won the auction with an acquisition consideration of RMB 88.4 million. After the acquisition was completed, the purchaser became the registered owner of Zhongzhu Plaza.
According to the consulting service agreement, Qingdao Wan Chen should provide consulting services to Jiangsu Anbo on the acquisition, with a consulting fee of RMB 710,000.
According to the pre-purchase agreement, Jiangsu Anbo shall acquire 95% of Huifang Zhongde's shares held in the Huifang supply chain at a sale consideration of RMB 96.67 million within the specified time specified in the agreement to fulfill the sale.
After the sale is completed, the Group will no longer hold any interest in Huifang Zhongde and the purchaser, and Huifang Zhongde and the purchaser will no longer be recorded as subsidiaries of the Group.