Zhitong Finance App News, Coastal Home (01124) issued an announcement. On March 27, 2024, the seller Fengying Global Investment Co., Ltd. (a wholly-owned subsidiary of the company) signed a share transfer agreement with the buyer Liang Xiaodong. The seller has already agreed to sell shares at a total cost of HK$10,000 in accordance with the terms of the share transfer agreement (equivalent to the total number of issued shares sold in the company).

According to reports, the selling company Qifeng Development Co., Ltd. was an indirect wholly-owned subsidiary of the company on the date of this announcement and immediately before completion. The selling company is mainly engaged in investment holding, and its subsidiaries are mainly engaged in property development and investment holding. The selling company currently holds 100% interest in the Anshan Coastal Xintiandi Project; and the Beijing Bay Project (through a joint venture where the selling company indirectly owns 40% interest).

Upon completion, the Group expects to obtain unaudited proceeds from the sale of approximately HK$19.411 million. The unaudited earnings were estimated based on a cost of HK$10,000 less the sale of the company's net unaudited liabilities (after deducting the value of unaudited non-controlling interests) of approximately HK$20.41 million (derived from the sale company's net unaudited liabilities of approximately HK$109 million after deducting the value of unaudited non-controlling interests of approximately HK$88,372 million) and estimated transaction costs. The actual gain/loss of the sale is or is different from the above and will be determined based on the final financial position of the selling company at the date of completion.

According to the announcement, the Group expects that most of its revenue will continue to come mainly from property development categories, including sales of completed properties and property investment categories, which include the Group's investments in commercial and residential properties located in China to obtain potential rental income and/or capital appreciation. As far as property development classification is concerned, the Group develops high-quality residential areas for the domestic high-end market. As far as property investment classification is concerned, the Group holds a number of properties (including commercial and residential properties located in China) for investment purposes. When managing the investment property portfolio, the Group considers the long-term growth potential and overall market conditions of the property, and may sell some of its investment properties for its benefit. For the six months ended September 30, 2023, revenue from the property development category accounted for about 5.2% of the company's total revenue for the current period, while revenue from the property investment category accounted for about 94.8% of the company's total revenue for the current period. Given that China's real estate industry is currently in a downward cycle, with revenue from the Group's property development classification shrinking for the six months ending September 30, 2023, the Group has adopted a conservative attitude in investing in new development projects. However, as part of its business activities in the Group's property development category, the Group continues to seek opportunities to invest in its development projects to reduce debt.

The company has applied to the Stock Exchange to resume trading of shares on the Stock Exchange starting at 9:00 a.m. on April 19, 2024.