German commercial production and investment services (02270.HK) announced that its indirectly wholly-owned subsidiary, Chengdu Dixin Shangyu Property Management, signed a memorandum with Chengdu Shudu Yintai Real Estate, Shanghai Kesheng Enterprise Management, and Chengdu Shudu Wanzhe Real Estate on the 4th.

It is reported that due to the further negotiation of the consideration payment terms for capital increase and cooperation agreements, in order to demonstrate the proactive attitude and sincerity of Dixin Shangyu in the negotiation, Dixin Shangyu agreed to pay 4 million RMB to Shudu Yintai as earnest money before yesterday. The earnest money will automatically convert into the transaction price, with any excess to be refunded or any shortfall to be compensated, after the parties to the memorandum reach an agreement on the payment terms to Shudu Yintai and sign a formal agreement.

The announcement also mentioned that if the parties to the memorandum have not yet reached an agreement on the payment terms to Shudu Yintai by December 31st of this year, Shudu Yintai agrees to refund all the earnest money to Dixin Shangyu in one lump sum within 3 days. (js/w)

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