On January 3, Glonghui reported that Wanwuyun (02602.HK) announced that on December 31, 2024, the company's wholly-owned subsidiary, Shenzhen Yuying Property Service Co., Ltd. (as the buyer), signed an Equity Transfer Agreement with an independent third party, Shenzhen Zhongzhou Investment Holding Co., Ltd. (as the seller). According to this agreement, the company will acquire 100% equity of Shenzhen Zhongzhou Property Management Co., Ltd. (Zhongzhou Property) from Zhongzhou Investment for RMB 226.95 million. The Equity Transfer Agreement will take effect upon approval by the seller's Board of Directors on January 2, 2025.
Zhongzhou Property is a company focused on providing Property Service for Residences, possessing rich property management experience and a good market reputation. This acquisition involves 44 residential projects under Zhongzhou Property, including 37 managed projects and 7 unregulated projects, with an annualized contract income of RMB 0.304 billion, and consolidated income of RMB 0.288 billion. Zhongzhou Property achieved an overall collection rate of over 86% for its projects in 2023, with a collection rate of over 90% for projects delivered for more than 5 years, and an overall average income per square meter of RMB 4.06. The projects are mainly distributed in core cities such as Shenzhen and Chengdu, with 97% of the projects (measured by annualized contract income) located within the company's value street range.
This acquisition is expected to add 10 new Butterfly Cities, upgrade 5 existing Butterfly Cities, and optimize 4 existing Butterfly Cities, enhancing the company's density in key city value streets. Through the renovation and Operation of Butterfly Cities, the company will improve service experiences, enhance operational efficiency and customer satisfaction, expand the company's scale and market share in the Property Service sector for Residences, and strengthen profitability and comprehensive competitiveness. This cooperation marks the beginning of the company's partnership with Zhongzhou Investment. The company believes that combining the advantages of both parties will better serve customers.
