SUNFONDA GP (01771.HK): Further Valuation Details on Disposal; Circular Extended to 25 November

NewTimeSpace News: On 21 October 2026, Sunfonda Group Holdings Limited (stock code: 01771) issued a supplementary announcement on its major transaction involving the disposal of the target company: the consideration was determined by reference to the target's market value of RMB20.15 million stated in a valuation report prepared by an independent property valuer on an asset basis, and the Company is providing further valuation information.

On methodology, as the target holding company's principal assets are real estate, Cushman & Wakefield considered the asset approach more appropriate among the three approaches; the income approach was not adopted because the target's cash flows derive solely from investment property leases and are reflected in the property's market value, and the market approach was not adopted due to the lack of comparable listed guideline companies or comparable equity transactions involving similar investment property holding companies.

The target property is a commercial property at 8 Xingchuang 4th Road, Xinwu District, Wuxi, completed in 2015, comprising two commercial buildings on a site area of 6,176.10 square metres with total gross floor area of approximately 6,259.10 square metres; it is leased to a single tenant under a 10-year lease expiring on 17 September 2034 at a current monthly rent of approximately RMB341,270 (excluding VAT and management fees), with the land use right expiring on 28 July 2053 for wholesale and retail purposes. The income capitalisation approach was adopted, with market unit rents of RMB27 per square metre per month for commercial space and RMB11 for open space, and capitalisation rates of 9.00% (term) and 8.50% (reversion), giving a market value of RMB35,000,000 as at 30 September 2026.

The target's net assets were RMB6,970,000 on a book basis and RMB20,150,000 on a market basis as at 30 September 2026; property, plant and equipment had a book value of RMB11,756,001 and a market value of RMB35,000,000, while the intangible asset (land use right) of RMB9,729,108 and long-term prepaid expenses of RMB332,556 were ascribed nil market value. The circular was originally due within 15 business days after the announcement; as more time is needed to prepare information including the indebtedness statement and working capital sufficiency statement, the Stock Exchange granted a waiver from strict compliance with Rule 14.41(a) on 21 October 2026 on condition that the circular is despatched by 25 November.