01660.HK announced that on December 24, 2021, the buyer (the company's indirect wholly-owned subsidiary) entered into a sale and purchase agreement with the sellers (Xu Weizhen and Chen Jiazhen), according to which the seller conditionally agreed to sell and the buyer conditionally agreed to acquire the target company.Shenzhen Bang Century Interactive Network Co., Ltd.The consideration is RMB 3 million.
It is reported that the target company is a company established in accordance with Chinese law, mainly engaged in investment holding business. Its wholly-owned subsidiary operates a number of self-branded retail stores in shopping malls in Shenzhen, including playgrounds, cinemas, supermarkets and licensed branded electrical retail stores.
While the target company's financial performance was affected by the COVID-19 pandemic the year before the acquisition, the board saw a rapid recovery in its business driven by Shenzhen's strong retail consumer market and thought it was good value for money.
Upon completion of the acquisition, the target company will become an indirect wholly-owned subsidiary of the company. As the properties have been leased by the Target Group for use as its retail stores and the Directors consider that the properties are suitable for the business of the Target Group, the Directors consider that it is fair and reasonable for the Target Group to enter into a tenancy agreement to ensure the use of the property at the prevailing market rent to continue its business operations.