KINETIC DEV plans to acquire 100% equity of Seedlife

According to the news from Zhitong Finance and Economics APP, KINETIC DEV (01277) announced that on June 6, 2024, its indirect wholly-owned subsidiary, KINETIC Qinhuangdao, entered into a third supplemental agreement with the 2024 agreement seller and Guangzhou Hengyi. Under this agreement (including), (i) Guangzhou Hengyi transferred the 2024 target property to KINETIC Qinhuangdao for a total consideration of RMB 45 million; (ii) Guangzhou Hengyi has paid the sales tax payable on the transfer of the 2024 target property, amounting to RMB 41.84 million, which has been paid by KINETIC Qinhuangdao and deducted from the total consideration of RMB 45 million. Therefore, the net consideration paid by KINETIC Qinhuangdao for the acquisition of the 2024 target property is RMB 40.816 million. The net consideration shall be offset against and deducted from the previously paid amounts awaiting delivery; (iii) the latest amount of the amounts paid awaiting delivery after offsetting as described in (ii) above is RMB 542 million; (iv) the 2024 terminated property (with a distribution price of RMB 40.89 million) will no longer be sold to KINETIC Qinhuangdao; and (v) the rights and obligations of the 2024 terminated property under the 2022 property purchase agreement between the 2024 agreement seller and KINETIC Qinhuangdao (as amended by the supplemental agreement and the second supplemental agreement) have been terminated, effective as of the date of the third supplemental agreement.

The 2024 target property includes 6 commercial property units located at 16 Huaxia Road, Tianhe District, Guangzhou City, Guangdong Province, with a total construction area of approximately 1,182.0 square meters.

In addition, on the same day, the company entered into a letter of intent with Mr. Zhang Liang and Seedland Smart Service, under which (including), the company formally confirmed its intention to acquire 100% equity of Seedlife from Seedland Smart Service; Mr. Zhang Liang and Seedland Smart Service agreed to assist the company in conducting due diligence on Seedlife; and the company will transfer HKD 25 million to Mr. Zhang Liang and Seedland Smart Service as a guarantee for this acquisition.

Based on the information currently known to the company, Seedlife is a limited company registered and established under the laws of the British Virgin Islands, directly held 100% by Seedland Smart Service. It mainly engages in property management services in China through its subsidiaries