Asia-Pacific Strategic Investments Limited Proposes Partial Exit from Huzhou Dixi Gengdu Ecological Agriculture Development Co., Ltd.

Key Highlights

• Asia-Pacific Strategic Investments Limited (“APSIL”) has entered into a sale and purchase agreement (SPA) to divest 1% of its equity interest in Huzhou Dixi Gengdu Ecological Agriculture Development Co., Ltd. (“Huzhou Dixi”).
• The agreed sale consideration is RMB400,000 (approximately S\$73,244), to be satisfied fully in cash upon completion.
• The proposed disposal represents an initial step towards APSIL’s withdrawal from the Huzhou Project, potentially signaling further divestments.
• The transaction will result in a loss on disposal of approximately S\$135,000, being below the book value of the Sale Interests.
• The transaction is a non-disclosable one under SGX Catalist Rules, but was voluntarily announced to ensure transparency.

Detailed Transaction Overview

On 11 December 2025, APSIL announced it had entered into an SPA with Leigu Investments Pte. Ltd. to sell 1% of Huzhou Dixi’s issued and paid-up capital. Huzhou Dixi is a PRC-incorporated company, focused on real estate development, notably the creation of waterside villas, island residences, townhouses, hotels, leisure farm resorts, and canal sightseeing facilities in Huzhou, PRC. The project covers a substantial 320-hectare land parcel, emphasizing wellbeing and healthy living, and is intended to showcase the unique culture of the western Yangtze River region.

Background of Huzhou Dixi

• In November 2017, APSIL completed the acquisition of a 72% stake in Huzhou Dixi, which remains its shareholding as of the announcement date.
• Huzhou Dixi’s registered and paid-up capital is RMB100,000,000 (approximately S\$18.3 million), fully paid.
• Other shareholders include Shanghai Fenghong Technology Development Partnership (28%).

About the Purchaser

• Leigu Investments Pte. Ltd. is a Singapore-incorporated company, established on 31 August 2025.
• Its shareholders are Guo Zhizhen and Dong Liqun. Notably, Dong Liqun owns 40,699,900 shares in APSIL, representing about 0.228% of its issued shares.
• No other relationships or cross-shareholdings exist between the Purchaser and APSIL’s directors, management, or significant shareholders.

Financial Impact of the Disposal

• The sale consideration of RMB400,000 (about S\$73,244) is significantly lower than the net tangible assets (NTA) of the 1% interest, which is RMB1,114,000 (approximately S\$198,000) as of 30 June 2025.
• The shortfall between the sale proceeds and the book value is attributed to the challenging real estate market conditions in the PRC, which have depressed transaction prices.
• The estimated net proceeds after expenses (S\$10,000) will be about S\$63,244, resulting in a loss on disposal of approximately S\$135,000.
• The transaction does not meet the thresholds for mandatory disclosure under SGX Catalist Rules but was voluntarily announced for transparency.

Strategic Rationale and Potential Price Sensitivity

APSIL views the disposal as an opportunity to begin its phased exit from the Huzhou Project and to unlock the value of its investment in Huzhou Dixi. The company is currently in discussions with the Purchaser regarding potential further transactions involving Huzhou Dixi, although no additional terms have been finalized.

Shareholders should note that:

• The disposal may indicate a strategic shift or reallocation of capital by APSIL, which could impact future earnings and valuation.
• The loss on disposal and the depressed transaction price reflect ongoing sector headwinds in China’s real estate market, which may affect APSIL’s asset values and profitability if further disposals occur.
• Future additional disposals or exits from Huzhou Dixi may have further implications for APSIL’s financial position and strategic direction.

The company has committed to updating shareholders on any material developments relating to the disposal and further transactions regarding Huzhou Dixi.

Directors’ and Substantial Shareholders’ Interests

None of the directors or substantial shareholders of APSIL, except via their own shareholdings, have any direct or indirect interest in the proposed disposal.

Documents and Inspection

A copy of the SPA is available for inspection at APSIL’s registered office at 36 Robinson Road, #20-01 City House Singapore 068877, during normal business hours for three months from the date of announcement.

Conclusion

This proposed disposal is a significant strategic move by APSIL, marking the beginning of its potential exit from a substantial PRC property project. While the immediate financial impact is negative, the announcement signals possible future divestments and a recalibration of the company’s focus, which could influence its share price and valuation. Investors should closely monitor further announcements and developments.

Disclaimer: This article is based on publicly available information and company disclosures as of 11 December 2025. It does not constitute investment advice. Readers should consult their financial advisors or conduct further research before making any investment decisions. The author and publisher accept no liability for any losses incurred as a result of reliance on this information.

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