Suxin Joyful Life Services (02152.HK): Sells Suzhou Jinlin Apartment for RMB 231M; Buyer is Indirect Wholly-Owned Subsidiary of China Resources Land

NewTimeSpace News: Suxin Joyful Life Services Co., Ltd. (stock code: 2152) announced on July 21 a major transaction regarding the sale of the property through public tender.

Reference is made to the business update announcement regarding the proposed sale of the property by Jinshi through public tender at the Suzhou Transaction Center. As disclosed in the business update announcement, the proposed sale reserve price was approximately RMB 231 million, determined with reference to the property valuation conducted by independent valuer Zhongtongcheng as of April 30, 2025 using the cost method.

As of the date of this announcement, the public tender procedure at the Suzhou Transaction Center has been completed. The buyer is the successful bidder of the property, with a final consideration of RMB 231 million. On July 21, 2026, Jinshi and the buyer entered into the agreements, pursuant to which Jinshi conditionally agreed to sell and the buyer conditionally agreed to acquire the property at the final consideration.

Key terms of the agreements: dated July 21, 2026; parties are Jinshi (as seller) and the buyer (as buyer); the asset to be sold is the property. The final consideration for the sale is RMB 231 million, equal to the reserve price. The final consideration was determined through the tender procedure at the Suzhou Transaction Center with reference to the reserve price, which was determined with reference to the valuation conducted by independent valuer Zhongtongcheng based on the cost method as of April 30, 2025, with the valuation valid for one year until April 29, 2026.

Payment terms: on July 15, 2026, the buyer paid a deposit of RMB 69.3 million to the Suzhou Transaction Center in accordance with relevant public tender regulations. The buyer must pay the remaining final consideration of RMB 161.7 million to the Suzhou Transaction Center within 5 working days from the effective date of the agreements (when all conditions precedent are fulfilled). The Suzhou Transaction Center will pay the final consideration to the account designated by Jinshi.

Conditions precedent include: both parties obtaining all necessary internal approvals and third-party consents (if any); the Company obtaining all necessary consents and approvals under applicable laws, rules and regulations (including but not limited to the Listing Rules) (including but not limited to shareholders' approval under the Listing Rules); and obtaining all necessary approvals from state-owned asset supervision and administration departments or relevant competent authorities.

The property is a real estate property located at No. 365 Helu Road, Suzhou (also known as Jinlin Apartment). The land use right was obtained through allocation, with designated land use for industrial purposes, expiring in December 2056. The property comprises 11 buildings, including ten dormitory/apartment buildings each with a construction area of 7,114.14 sq.m., providing a total of 1,598 rooms. In addition, there is a separate ancillary building. The property has clear and complete title, with no mortgages, charges or encumbrances.

Jones Lang LaSalle valued the property at approximately RMB 229.5 million as of April 30, 2026 on a market value basis. For the two years ended December 31, 2025, profit before tax from renting the property units was RMB 4,548.0 thousand and RMB 3,411.0 thousand respectively; profit after tax was RMB 1,326.9 thousand and RMB 995.2 thousand respectively.

Reasons for and benefits of the sale: the Group acquired the property in 2012 and has been renting out its units for investment income. With increasing years of use, natural aging of the property has gradually become apparent, affecting its rental operations. The sale is both an active measure to revitalize the Group's asset portfolio and will bring considerable cash inflow, enabling the Group to concentrate quality resources on its core business and strengthen its competitive position.

Financial impact: the Company estimates tax payments related to the sale of approximately RMB 26.7 million. Based on the final consideration and currently available information, the Company expects to recognize a loss of approximately RMB 2.3 million from the sale, mainly attributable to the above tax payments. The loss is calculated with reference to the difference between the final consideration and the property's carrying value of approximately RMB 230.9 million in the Company's consolidated financial statements, taking into account tax effects and estimated incidental costs. The Company intends to apply the proceeds to market expansion of the Group's core business and to supplement working capital in light of the industry characteristic of longer settlement cycles for urban services business.

The buyer is Youchao Housing Leasing (Suzhou) Co., Ltd., a limited company established in China principally engaged in housing leasing services. According to information obtained by the Board, the buyer is indirectly wholly-owned by China Resources Land Limited (stock code: 1109), a company listed on the Main Board of the Stock Exchange. To the best of the Directors' knowledge, information and belief after making all reasonable enquiries, the buyer and its ultimate beneficial owner are independent third parties.

As one or more applicable percentage ratios exceed 25% but are all below 75%, the sale constitutes a major transaction for the Company under Chapter 14 of the Listing Rules, subject to reporting, announcement, circular and shareholders' approval requirements. As of the date of this announcement, Suzhou SND Company and its wholly-owned subsidiary Suzhou SND Urban Construction together hold 75,000,000 domestic shares, representing approximately 74.22% of the Company's issued share capital. As controlling shareholders, they have approved the sale by written shareholders' approval under Rule 14.44 of the Listing Rules in lieu of a resolution at a general meeting. A circular containing details of the sale will be despatched to shareholders on or before August 11, 2026.

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