Suxin Joyful Life Services Announces Major Asset Disposal Through Public Tender

Key Highlights

• Proposed Disposal: Suxin Joyful Life Services Co., Ltd. (“the Company”) intends to dispose of a significant immovable property asset via public tender at the Suzhou Exchange Centre, through its wholly-owned subsidiary, Suzhou Golden Lion Building Development Management Co., Ltd. (“Golden Lion”).
• Base Price: The base price for the property disposal is set at approximately RMB231 million, determined by an independent valuation as at 30 April 2025. The final consideration will be at least the base price and may be higher, depending on the outcome of the public tender.
• Transaction Classification: The disposal qualifies as a major transaction under Chapter 14 of the Hong Kong Listing Rules, with applicable percentage ratios exceeding 25% (but less than 75%). It may also be considered a connected transaction under Chapter 14A if the successful bidder is a connected person.
• Financial Impact: Based on the base price, the Company expects to recognize a gain of approximately RMB0.1 million, calculated as the difference between the base price and the carrying amount of the property in the Company’s consolidated financial statements (RMB230.9 million).
• Asset Details: The property is located at No. 365 Heshan Road, Suzhou City, with a land use right expiring on 30 December 2056. It comprises 11 buildings, including ten dormitory buildings and one ancillary facility, with a total gross floor area of 78,058.72 square metres.
• Public Tender Process: The tender was publicly announced on 29 April 2026, with a 40 working day publication period for interested bidders. Prospective bidders must register and pay a deposit of RMB69.3 million. If multiple bidders qualify, the successful bidder will be selected by the Suzhou Exchange Centre’s bidding procedures.
• Strategic Rationale: The disposal is intended to optimize the Company’s asset portfolio, generate substantial cash inflow, and allow the Company to focus resources on its core business and strengthen its competitive position.
• Further Announcements: Upon determination of the final consideration and the identity of the successful bidder, the Company will issue a further announcement in compliance with all applicable Listing Rules requirements.

Details of the Property and Disposal

The property up for disposal was acquired in 2012 and has been used to generate investment income through leasing. With natural deterioration due to age impacting leasing operations, the Company sees this disposal as a strategic move to refresh its asset portfolio and reinforce its core business. The property is free from any mortgage, charge, or encumbrance and is held under Immovable Property Ownership Certificate No. Su (2017) Suzhou Real Property No. 5078750.

The asset comprises ten dormitory buildings (each with a gross floor area of 7,114.14 sqm) and two apartment buildings, all six-storey structures, plus one standalone integrated facilities building (gross floor area of 6,917.32 sqm). The aggregate number of rooms provided by the dormitory blocks is 1,598.

Financial and Shareholder Implications

• Cash Proceeds: The transaction, if completed, will generate substantial cash proceeds, allowing for improved resource allocation and operational efficiency.
• Potential Price Sensitivity: The disposal is classified as a major transaction and may also be a connected transaction, which are both price-sensitive events under Hong Kong Listing Rules. Shareholders should note that the actual gain, final consideration, and successful bidder are yet to be determined and will be subject to audit.
• Risk Notice: The transaction may or may not proceed depending on tender results. Shareholders and potential investors are advised to exercise caution when dealing in the securities of the Company.

Management Statement

The Board considers the terms of the proposed disposal fair and reasonable, conducted on normal commercial terms, and in the interests of the Company and its shareholders. The disposal is consistent with the Company’s strategic objectives to focus on its core competencies and enhance shareholder value.

Next Steps and Disclosure

Upon confirmation of the successful bidder and the final consideration, the Company will issue a further announcement to comply with the requirements of Chapter 14 and Chapter 14A of the Listing Rules. No asset transfer agreement has been signed as of the announcement date.

Investors should monitor further announcements from the Company regarding the progress of the disposal, as these could materially affect the Company’s financial position and share price.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. The proposed disposal described above may or may not proceed. Investors are urged to exercise caution and consult their financial advisors before making any investment decisions related to Suxin Joyful Life Services Co., Ltd.

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