Zhitong Financial APP News, Fangyuan Life Service (09978) announced that on October 25, 2021, Guangzhou Fangrun Life Service, an indirect wholly-owned subsidiary of the company, as a buyer, has entered into a share purchase agreement with the seller Shanghai Green Baoyuan Enterprise Management Partnership, Wu Haojie, Zheng Yuanzhen and the target company Guangdong Yikang property Service, according to which the buyer has conditionally agreed to acquire sales shares accounting for 60% of the equity interest of the target company. The cash consideration is RMB 34.3988 million.
Upon completion, the buyer, Wu Haojie and Zheng Yuanzhen will hold 60%, 36% and 4% of the equity interests of the target company respectively, and the target company will become an indirect non-wholly-owned subsidiary of the company. and the financial performance of the target company will be consolidated in the financial statements of the Group.
It is reported that the target company is a limited company established under Chinese law on November 2, 2010, a comprehensive property management service provider with three levels of property management qualifications, headquartered in Dongguan City, Guangdong Province. It has six branches in Dongguan, Guangzhou, Meizhou and Huazhou, as well as a wholly-owned subsidiary in Meizhou. As at the date of this announcement, the Target Company has signed a contract to provide property management services for approximately 20 residential and commercial projects in Dongguan and Meizhou, Guangdong Province, covering an area of approximately 1.3 million square meters.
The Directors believe that the acquisition provides an excellent opportunity for the Group to further expand its property management portfolio in the Greater Bay market. The directors are of the view that the property management industry has shown steady growth over the past few years and will continue to prosper in the next few years with the support of the Chinese government and the continued growth in demand for property management services and the supply of commercial properties.
In addition, with regard to the acquisition of Mianyanghong, the board of directors announced that the acquisition of Mianyanghong had been completed in accordance with the terms and conditions of the share purchase agreement entered into between the Purchaser and Shanghai Dongzimen Enterprise Management Partnership (Limited Partnership), Li Gong and Luo Peng. After the completion of the acquisition of Changsha Yanghong, Changsha Yanghong is held by 51%, 31.85% and 17.15% respectively by the buyer, Li Kui and Luo Peng. Changsha Miyanghong becomes an indirect non-wholly-owned subsidiary of the company. and the financial performance of Changsha Miyanghong will be consolidated in the group's financial statements.