S.F. Holding (06936) plans to invest up to 305 million yuan to subscribe for shares in Fengchao, deepening its strategic layout in last-mile logistics.

S.F. Holding (06936) announced that its indirect wholly-owned subsidiary Liangyue intends to exercise its preemptive rights for the issuance of Class A ordinary shares of Fengchao, and may at its discretion exercise its over-allotment preemptive rights. According to the announcement, the base preemptive subscription will subscribe for approximately 46.8291 million Class A ordinary shares of Fengchao at a price of 2.8489 yuan per share, corresponding to a consideration of 133 million yuan; if all preemptive and over-allotment preemptive rights are exercised, the total consideration will be capped at 305 million yuan. Assuming that Liangyue exercises its over-allotment preemptive rights up to the maximum amount, it will hold approximately 107 million shares of Fengchao, accounting for 10.03% of Fengchao's shares. Fengchao primarily engages in last-mile logistics solutions and comprehensive lifestyle services. The subscription will enable the company to maintain its influence over the development of Fengchao's service network, technology, and user base. The Board believes that the subscription aligns with the group's strategy to deepen its participation in the last-mile logistics ecosystem and enhance overall competitiveness through diversified logistics services. The subscription will be funded by internal funds or funds raised by the group, and it is expected not to have a significant adverse impact on the group's financial condition. The Board believes that the subscription is beneficial for the group's long-term development and aligns with the overall interests of the company and its shareholders.