According to the Zhitong Finance APP, Betterlife Hldg (06909) announced that on October 21, 2024, Peking Betterlife Group (an indirect wholly-owned subsidiary of the company) has submitted its application to bid on the JD.com bidding platform and paid the deposit for the possible acquisition of the debt from Mengshang Bank.

The starting price of the bid is approximately RMB 0.965 billion. Potential bidders must pay a deposit of RMB 96.499 million to the JD.com bidding platform before bidding. The group has already paid the relevant deposit on October 21, 2024.

It is reported that the outstanding balance of the debt in question is approximately RMB 4.689 billion, with a principal balance of about RMB 2.832 billion and an interest balance of about RMB 1.857 billion.

The announcement states that the possible acquisition is aimed at allowing the company to further acquire certain assets that have been mortgaged or pledged as collateral by realizing its rights as a creditor. In particular, through the debt transfer agreements to be concluded and further arrangements with the debtors (if the group wins the bid), the company hopes to acquire equity in Aurora Star emblem (which operates the Mercedes-Benz brand 4S dealership on Beijing's East Fourth Ring) and Aurora Real Estate, which mainly owns properties leased to Aurora Star emblem for operating 4S dealerships, as well as other properties located on Beijing's East Fourth Ring, enabling the group to expand its auto dealership business in Beijing using these properties. The group aims to consolidate its market position as a leading luxury and ultra-luxury auto dealership service provider in China and seize opportunities in the auto market. The further arrangements related to the possible acquisition and the acquisition of related assets are in line with the group's strategy to expand its current luxury and ultra-luxury brand dealership network in first and second-tier cities in China, and will consolidate the group's market position for the Mercedes-Benz brand in Beijing. The group's auto dealership network and brand portfolio can further expand and generate synergies through the acquisition of these assets.