RSUN SER plans to acquire parking spaces and equity in three property development companies from RSUN PPT

According to the Zhitong Finance APP, RSUN SER (01971) announced that on February 17, 2025 (after trading hours), the company entered into a framework agreement for the transfer of parking spaces with the seller, RSUN PPT (01996). The company intends to acquire the ownership or usage rights (as applicable) of the target parking spaces, with a total consideration of approximately RMB 231 million, subject to the terms and conditions of the parking space transfer framework agreement. It is reported that the target parking spaces total 6,258 and are located in Jiangsu, Anhui, Sichuan, Jiangxi, Henan, Guangdong, and Hubei provinces in China. Individual transfer agreements will need to be established upon the completion of each project for the transactions to be finalized. On the same day (after trading hours), Nanjing Hongsheng (a wholly-owned subsidiary of the company) entered into respective equity transfer agreements with Chengdu Hongyang Jinxing, Xuzhou Hongqi, and Nanjing Hongtai Puyang (all indirect wholly-owned subsidiaries of the seller). Nanjing Hongsheng conditionally agreed to purchase 70% equity of Chengdu Hongsheng and Ding Real Estate Development Co., Ltd., 20% equity of Suqian Tongjin Hong Real Estate Co., Ltd., and 19% equity of Jurong Jinjia Run Real Estate Development Co., Ltd., with consideration of approximately RMB 142.4 million, RMB 73.95 million, and RMB 41.34 million, respectively, along with all other assets, liabilities, and equity attached to the aforementioned equity. The target parking spaces have not generated any income in previous years as they were not available for sale or lease. After the acquisition by the company, it will provide leasing and sales services for the target parking spaces. Specifically, the company will focus primarily on sales, while unsold spaces will be leased. This includes actively exploring potential customers with parking space needs, conducting regular promotional activities, and leveraging the company's core property management business to promote parking space sales. Additionally, temporary parking spaces will generate income through short-term parking fees. The company has extensive experience in managing and leasing parking spaces as part of its community value-added services, including property brokerage services and asset management services, and has established marketing channels and operational expertise to effectively promote, sell, and lease parking spaces to individual users. These acquisition matters align with the company's strategic goals, achieving revenue diversification without deviating from its light asset business model. While the company focuses on property management services, acquiring the target company's equity represents a simple and reliable opportunity to recover outstanding receivables, while acquiring the target parking spaces provides additional revenue sources from parking space sales, leasing, and advertising. These acquisitions aim to enhance cash flow, recover outstanding receivables, and create long-term value while maintaining the company's core focus on providing high-quality property management services. The target parking spaces and target companies were not previously managed by the company. Upon completion of these acquisitions, the company will integrate these assets into its existing property management business