Desun Real Estate Investment Services Group Co., Ltd. (Desun Services) announced that its wholly owned subsidiary, Chengdu Desun Real Estate Investment Property Service Co., Ltd. (Wuhan Branch), signed an Offset Agreement with Wuhan Desun Rong He Real Estate Co., Ltd. on 31 March 2026.
Under the agreement, Chengdu Desun will purchase two commercial-residential units (No. 301 and No. 302, Building 11, Desun Zhangtai Feili Tianxi Project, East Lake High-tech Development Zone, Wuhan) with a total gross floor area of about 282 sq.m. for RMB3.69 million. The consideration matches recent market quotations of roughly RMB13,900 per sq.m., implying a market value of approximately RMB3.91 million.
Settlement mechanics: • Receivables: Chengdu Desun holds outstanding property-management and related fees of RMB3.34 million due from Rong He Real Estate. • Set-off: The purchase price will be offset, on a renminbi-for-renminbi basis, against these receivables. • Residual balance: A remaining RMB0.36 million will be further set off against future receivables from Rong He Real Estate within three months of signing. Each party will bear its own taxes.
Rationale: Management targets faster recovery of overdue receivables, reduction of credit-risk exposure, and potential upside if property prices rise, viewing the terms as market-based and beneficial to shareholders.
Compliance: Because Rong He Real Estate is 33% controlled by Desun Services’ controlling shareholder and non-executive director Mr. Zou Kang, the deal is classified as a connected transaction under Chapter 14A of the Hong Kong Listing Rules. With applicable percentage ratios exceeding 0.1% but below 5%, the Offset Agreement requires announcement but is exempt from circular and independent shareholders’ approval. Mr. Zou abstained from the board vote; other directors had no material interest.
Company profile: Desun Services operates as an urban core asset manager, focusing on property services, asset operation, and investment & development through subsidiaries such as Chengdu Desun.
Date of announcement: 31 March 2026