On November 13, 2024, Man Sang Int'l (00938.HK) announced that its indirect wholly-owned subsidiary, Sichuan Huihong, entered into an equity transfer agreement, whereby Sichuan Huihong agreed to acquire and the seller agreed to sell all the equity of the target company, Chengdu Duofu Business Management Co.,Ltd., for a price of RMB 5 million.
The target company is a limited company established under Chinese law on January 21, 2019. The registered capital and paid-up capital of the target company are RMB 5 million. The target company is wholly owned by the seller. The target company is mainly engaged in commercial property management and ai software development. On June 1, 2019, the target company entered into an exclusive property management contract with the owner of a commercial complex in the Shanbandao business district in Chengdu. The complex includes a hotel, shopping center, office building, and parking lot, with a total construction area of approximately 136,492.98 square meters, and a fixed term of ten years. The property is well-located, easily accessible to Chengdu Metro Lines 6 and 8, and closely connected to Chengdu's central business district, including the Jianshe Road business district and the MixC City business district, with a high flow of people. The target company also engages in the development of ai software related to property management to utilize ai technology to boost tenant sales.
The directors believe that the acquisition will enable the group to (i) enhance group revenue by managing properties developed by Duofu Group and other parties and (ii) further strengthen the group's business capabilities in the Chinese property management industry. Both of these align with the group's global strategy and are expected to generate synergies within the group.
