Sunrise Shares Holdings Extends Major China Asset Sale: Payment Delayed to 2027 with Interest

Key Points from the Announcement

• Sunrise Shares Holdings Ltd. has amended its Share Sale Agreement with Shenzhen Zhonglin Enterprise Financial Consulting Co., Ltd. for the sale of its China subsidiaries.
• The original final payment deadline of September 2025 for RMB2,070,000 (S\$370,530) has been extended to September 2027, with interest to be paid on the outstanding amount.
• Reason for extension: Purchaser cited soft market conditions in China and cashflow management needs.
• The company has already received a 10% deposit (RMB230,000), and will receive a progress payment of RMB300,000 within 7 days of the supplemental agreement.
• The remaining RMB1,770,000 plus interest (based on China’s one-year loan prime rate) is due at the end of the two-year extension period.
• Directors state that the revised terms will not have a material impact on the Group’s net tangible assets or earnings per share for the current financial year ending June 2026.

Details for Investors: What You Need to Know

Sunrise Shares Holdings Ltd. (“Sunrise” or the “Company”) has announced a significant amendment to its previously disclosed agreement to sell its China-based subsidiaries, namely Shenzhen Sunrise Development Limited (“SSDL”) and its two subsidiaries, to Shenzhen Zhonglin Enterprise Financial Consulting Co., Ltd. (“Shenzhen Zhonglin”). The transaction, originally announced in March 2025 for a total consideration of RMB2,300,000, was structured so that 10% would be paid upon completion of share transfer registration, and the remaining 90% would be paid within six months.

However, due to current “soft market conditions” in the People’s Republic of China and the purchaser’s cashflow management requirements, Shenzhen Zhonglin requested (and Sunrise agreed) to extend the deadline for the large final payment. Under the new supplemental agreement signed on 18 September 2025, the remaining RMB2,070,000 final payment timeline is now split as follows:

• Progress Payment: RMB300,000 (S\$53,700) to be paid within seven days of the supplemental agreement
• Balance Payment: RMB1,770,000 (S\$316,830), now due by 17 September 2027 (two years from the supplemental agreement date), with interest accruing at the one-year loan prime rate published by the People’s Bank of China

All other terms of the original agreement remain in force. Sunrise’s directors assure stakeholders that these revised payment terms will not materially affect the company’s net tangible assets per share or earnings per share for the financial year ending 30 June 2026.

Shareholder Impact and Price-Sensitive Information

• Delayed Cash Inflow: The most price-sensitive aspect of this update is the deferral of the RMB1.77 million payment and the addition of an interest component, reflecting the challenging business environment in China. This means Sunrise’s expected cash inflow from the sale will be delayed by up to two years, which could impact liquidity and investment plans.
• Credit Risk and Execution Risk: Shareholders should note that the extended payment timeline introduces additional credit risk, as the purchaser’s ability to pay in 2027 will depend on future economic conditions.
• Interest Payment: The company will receive interest on the balance payment, partially compensating for the delay. The interest rate will be based on China’s loan prime rate, which may help offset some impact of the payment deferral.
• No Director or Controlling Shareholder Interest: The announcement confirms that no directors or controlling shareholders have any interest in the agreement, and no new directors are being appointed due to this transaction.
• Trading Caution: Sunrise’s board advises shareholders and potential investors to exercise caution in trading the company’s shares, given the uncertainty and delayed payment structure involved in the sale.

Conclusion

This revised sale and payment structure is a direct response to ongoing economic softness in China’s market, and could be seen as a prudent move to preserve the transaction rather than risk failure. However, the delayed cash inflow and added execution risk is a development that shareholders must watch closely, as it could affect the company’s short-term financial flexibility and potentially its share price.

A copy of the Supplemental Agreement is available for inspection at the Company’s registered office for three months from the date of the announcement.

Disclaimer

This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Investors are advised to conduct their own research and consult with professional advisors before making investment decisions. The information herein is based on company announcements and is believed to be accurate at the time of publication, but no warranty is given as to its accuracy or completeness.

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