ZHONG AO HOME (01538) plans to establish a joint venture with Jiang Caiying to carry out operations and cloud services businesses.

ZHONG AO HOME (01538) announced that on July 21, 2026, XINZHAO (a wholly-owned subsidiary of the Company) entered into a joint venture agreement with Ms. Jiang Caiying, under which all parties agreed to jointly operate the joint venture group. The joint venture agreement outlines the rights and responsibilities of XINZHAO and the British Virgin Islands holding company as the ultimate shareholders of the joint venture group, as well as the structure and business operations of the joint venture group. Subject to the terms and conditions of the joint venture agreement, XINZHAO has conditionally agreed to facilitate the issuance of convertible bonds to the British Virgin Islands holding company totaling HK$306 million. Based on an initial conversion price of HK$0.93 per share (adjustable), upon exercise of the conversion rights, up to a maximum of 329 million shares will be issued and distributed, equivalent to approximately 38.50% of the total number of shares issued as of the date of this announcement; and the total number of shares issued will be increased by approximately 27.80% after the conversion of convertible bonds (assuming no change in the issued share capital of the Company from the date of this announcement until full conversion at the initial conversion price). While the Group will continue to focus on, operate, and develop its core business, the Group also intends to engage in operation and cloud service businesses through the joint venture company. The Company expects that this new business will bring in more operating income and profits, helping to enhance the Group's profitability. The establishment of the joint venture company will not only help the Group expand its business development, cooperation, and investment opportunities in the operation and cloud service sectors, but will also provide big data analysis to improve the Group's property management services and optimize management services through AI intelligent agency, creating a comprehensive synergistic effect for the Group to enhance the efficiency and effectiveness of its property management services, and reduce manpower and operating costs. The Group aims to enhance its service quality and profit margins through the application of operation and cloud services, transforming the Company from a standard service provider to a high-value property technology platform, achieving a strategic repositioning.