On January 20, China Resources Vientiane life (01209. HK) announced that Chuang run development Co., Ltd., a wholly-owned subsidiary of the company, entered into an equity transfer agreement with the seller to acquire all the equity of Nantong Changle Property Co., Ltd. and 1% equity of Jiangsu Zhongnan Property Service Co., Ltd. for no more than RMB 2.26 billion.
Statistics show that Nantong Changle and Jiangsu Zhongnan are mainly engaged in property management services. After the completion of the above transaction, China Resources Vientiane life will indirectly hold 100% equity of Jiangsu Zhongnan.
According to the announcement, the after tax profit of Central South Jiangsu in 2021 was 175.9 million yuan, a year-on-year increase of 163.5%. As of December 31, Nantong Changle, Jiangsu Zhongnan and their subsidiaries and branches have a total area of 51.47 million square meters under management in Jiangsu Province, Shandong Province, Zhejiang Province and Sichuan Province, with a total contract area and in transit area of 39.41 million square meters. It is expected that the management area will reach more than 90 million square meters within five years.
China Resources Vientiane life said in the announcement that the acquisition will increase the group’s Management Concentration in the above regions, improve market influence and regional synergy value of the group.
China Resources Vientiane life is accelerating the pace of property management business.
On December 9, 2021, Yu Linkang, President of China Resources Vientiane life, pointed out at a press conference that the company’s area under management is expected to reach 400 million square meters in 2025. On January 5 this year, China Resources Vientiane life announced that it planned to acquire Yuzhou property for no more than 1.06 billion yuan.
