BASIC H NEWLIFE (08360) has expanded its business scope to real estate and "simple housing" rental and related management services.

BASIC H NEWLIFE (08360) announced that the Group plans to allocate more resources to seize opportunities in the property market. To align with the strategy of expanding its business scope, leveraging its core expertise and capabilities in interior design, renovation, maintenance, and upkeep services, the Group will expand its business scope to include real estate and "Spartan House" leasing and related management services (referred to as "Spartan House Business"). The "Spartan House Ordinance" (Chapter 658 of the Laws of Hong Kong) was promulgated on October 3, 2025, and took effect on March 1, 2026 (excluding Part 2). Under the Spartan House regulatory system, residential units in buildings must comply with relevant minimum living environment standards and obtain Spartan House certification in order to be legally rented out (including under any lease or occupation permit agreement) to ensure that the units can provide safe, hygienic, and reasonable living environments. Given this new regulatory environment, the Company intends to strictly adhere to the standards and requirements under the new ordinance and enhance its Spartan House Business. Leveraging its existing comprehensive strength, the Group aims to position itself as a leading provider of high-quality, compliant Spartan Houses. The Spartan House Business will operate in a flexible model, allowing the Group to act as the landlord or master tenant, earning rental income by providing Spartan Houses or providing consultancy and management services to third-party owners to transform their properties into Spartan Houses and carry out subsequent operations. The Group will allocate additional resources for the strategic development of the Spartan House Business to strengthen its portfolio of owned, leased, and managed properties. Looking ahead, the Group will continue to seek market opportunities in the entire property sector, including acquiring or leasing residential properties with strong rental demand or capital appreciation potential, as well as collaborating with owners to provide end-to-end solutions, including transforming their properties into Spartan Houses and ongoing lease management. Furthermore, the Group has set preliminary strategic objectives to develop a portfolio of approximately 1,000 Spartan Houses (mainly comprising leased and managed properties) within the first year of the development plan implementation. For illustration purposes, assuming all units are leased and the average monthly rent is around HK$5000 per unit, this portfolio could generate an annual recurring income flow of approximately HK$60 million. Over the next 3 years, as the business scale gradually expands, the Group expects to expand this portfolio to approximately 3,000 Spartan Houses, subject to market conditions at the time and the availability of suitable market opportunities. The Board believes that this strategic business development will support the sustainable growth of the Group's business, consolidate its recurring income base, and enhance long-term shareholder value.