Shenyang Public Development Co., Ltd. (00747) Subsidiary plans to acquire a 51% equity stake in Guangzhou Zhudao Property Management for 550,000 yuan.

Shenyang Public Development Limited (00747) announced on February 28, 2025, that the buyer, Shenzhen Wanzhi Hotel Apartment Management Co., Ltd. (a wholly-owned subsidiary of the company), has entered into a stock transfer agreement with the seller, Beijing Jiuzhou Technology Co., Ltd., in which the buyer conditionally agrees to purchase and the seller conditionally agrees to sell the sale shares (i.e. 51% equity of the target company) for a price of RMB 550,000. The target company, Guangzhou Zhudao Property Management Co., Ltd., and Shijiazhuang Runhua mainly engage in property management services. The target company is currently providing property management services to Zhudao Garden in Guangzhou, China. Shijiazhuang Runhua currently serves a high-end villa area named Xishan Yuyuan in Shijiazhuang, China. The announcement stated that the target company has a good reputation in property management, particularly in Guangzhou. This provides a valuable foundation for the group. Combined with its extensive resources and networks, the group has good conditions to obtain more property management contracts in the future. This partnership will enhance the group's influence in the property management market and consolidate its competitive advantage. Property management is a recurring revenue business that provides predictable cash flow and reduces the group's reliance on the cyclical nature of property development and construction. This business development aligns with the group's long-term growth strategy and strengthens its resilience in volatile market environments. In addition, the target company's Guangzhou business has the potential to generate additional revenue through value-added services such as leasing support, facility upgrades, and concierge services. These services not only help improve profitability but also cultivate more stable customer relationships, promoting long-term maintenance and growth.