C&D Property Management Group Co., Ltd (2156) entered into an agreement on 27 January 2026 to acquire the remaining 25% equity interest in Xiamen Zhaohui Network Technology Co., Ltd. (“Xiamen Zhaohui”) at a consideration of RMB14.8918 million. The seller, Xiamen Yi Yue Property Company Limited (“Yi Yue”), is an indirect wholly-owned subsidiary of C&D International Investment Group Limited (“CDI”), which is the controlling shareholder of C&D Property Management. Given Yi Yue’s connected person status, the transaction is classified under Chapter 14A of the Listing Rules but remains exempt from shareholders’ approval due to all applicable percentage ratios being below 5%.
Prior to the acquisition, Xiamen Zhaohui was held 75% by Xiamen Yirui (an indirectly wholly-owned subsidiary of Li Chi (Hong Kong) Limited, itself an indirect subsidiary of C&D Property Management) and 25% by Yi Yue. Upon completion of this transaction, Xiamen Zhaohui will become a wholly-owned subsidiary of C&D Property Management Group. The consideration was determined with reference to an independent valuation, which placed the appraised value of Xiamen Zhaohui at RMB59.5672 million as of 30 September 2025 using a discounted cash flow model.
According to disclosed figures, Xiamen Zhaohui’s audited net profit after tax for the 2024 financial year was RMB16.895 million, compared to RMB14.312 million (unaudited) for 2023, and revenue increased to RMB224.126 million in 2024 from RMB183.587 million in 2023. Management highlighted that Xiamen Zhaohui focuses on technology solutions including software development and smart community services, which aligns with C&D Property Management’s core business expansion strategy.
Following the acquisition’s completion, the bank and cash balance of C&D Property Management Group is expected to decrease by the consideration amount, with no material impact on net profit. The company stated that acquiring full control will help enhance operational efficiency and resource allocation in Xiamen Zhaohui, aligning with the group’s long-term business development objectives.