SUNAC (01918) has announced that on August 24, 2026, its indirect wholly-owned subsidiary, Sunac Real Estate Management Co., Ltd., entered into a sale and purchase agreement with the seller, Rongzhe Gongchuang Holding Co., Ltd. Under the agreement, the seller has conditionally agreed to sell, and the buyer has conditionally agreed to acquire, the entire equity interest in the target company, Rongshun Investment Co., Ltd., which indirectly holds 100% of Erjin Management.
The consideration for the acquisition is set at RMB 123 million, equivalent to approximately HK$142 million based on an exchange rate of RMB 1 to HK$1.156. This amount will be settled by the company through the allotment and issuance of consideration shares to the seller at the time of closing, totaling 260 million new shares of the company. These consideration shares represent approximately 1.30% of the company's issued share capital as of the announcement date, and approximately 1.29% of the enlarged issued share capital following the full allotment and issuance of the consideration shares, assuming no other changes to the issued share capital between the announcement date and the closing date of the acquisition.
The issue price of HK$0.547 per share represents a premium of approximately 0.37% over the closing price of HK$0.545 per share quoted on the Stock Exchange on the date of the sale and purchase agreement.
In response to industry changes and to better align with development trends and policy directions, the group intends to leverage its resource advantages and competitive strengths to establish "asset management plus asset operations" as its strategic transformation direction. For the real estate business, the group plans to shift from the traditional integrated investment and development model to a business model where asset management and project construction and operations management operate as two independent business segments, each pursuing market-oriented business independently while also supporting and coordinating with each other for synergistic growth.
Erjin Management focuses on the development of light-asset businesses in real estate construction management and asset management. It has established comprehensive business system capabilities and possesses considerable industry influence and business scale, emerging as a rising force in the field of high-end real estate integrated solutions. The company has initially formed a business layout with the Yangtze River Delta as its core base, extending to key regions nationwide. As of now, Erjin Management's projects are distributed across Zhejiang, Anhui, Fujian, Shanghai, and Jiangsu, having secured a cumulative total of 73 projects with a combined contracted area of approximately 8.34 million square meters.
The business model of Erjin Management aligns closely with the transformation direction of the group's real estate development business. This acquisition will strengthen the strategic transformation support points for the group's real estate segment and facilitate the implementation of the overall strategic transformation. Through sustained efforts and accumulation, Erjin Management has built capabilities and competitive advantages in providing construction management services to third-party property owners, establishing a comprehensive management system covering project expansion, daily project management, and team incentives. The acquisition will help the group quickly integrate and enhance its third-party construction management business development and management capabilities. Additionally, it will enable the Erjin Management team to leverage its professional expertise and amplify its competitive advantages on a larger platform, achieving better development outcomes.