Opinion Network News:On December 24, Zhaobangji Properties Holdings Limited issued an announcement disclosing the details of the acquisition and entering into a lease agreement.

Opinion New Media learned that on December 24, the buyer (an indirect wholly-owned subsidiary of Zhaobangji) entered into sales agreements with various sellers (Xu Weizhen and Chen Jiazhen). Based on this, the seller conditionally agreed to the sale, while the buyer conditionally agreed to acquire all of the shares of the target company (Shenzhen Bangshiji Interactive Network Co., Ltd.) at a cost of RMB 3 million (equivalent to about HK$3.677,000).

Since Xu Weizhen and Chan Ka-chun are the nephews and nephews of the Xu Chu family (executive director and controlling shareholder of Zhaobangji Properties), respectively, the seller is treated as a related person of Zhaobangji Properties according to Chapter 14A of the listing rules, and according to Chapter 14A of the listing rules, the acquisition constitutes a connected transaction of the company.

According to the announcement, the target company is mainly engaged in investment holding business, and its wholly-owned subsidiary operates a number of self-branded retail stores in shopping malls in Shenzhen, including playgrounds, cinemas, supermarkets and franchised brand electronics retail stores.

Although the target company's financial performance was affected by the COVID-19 pandemic the year before the purchase, the board saw a rapid recovery in its business driven by the strong retail consumer market in Shenzhen and thought the cost was worth the money.

Also, on the day of the announcement, the tenant (a wholly-owned subsidiary of the target company) (i) entered into a lease agreement with the owner, Shenzhen Jinyifu Investment and Development Co., Ltd., to lease the property for a period of one year, with a total monthly rent of RMB 156,200; (ii) entered into a leasing agreement with the owner, Shenzhen Liyumen Investment and Development Co., Ltd., to lease the property for a period of one year, with a total monthly rent of RMB 222,300.