HONG KONG, Dec 16, 2019 - (ACN Newswire) - Sansheng Holdings (Group) Co. Ltd. ("Sansheng Holdings" or the "Company", together with its subsidiaries, collectively referred to as the "Group"; stock code: 2183.HK), is pleased to announce that at the extraordinary shareholders' meeting held on 13 December, 2019 a high vote of 92% shareholders approved the acquisition of Fujian Shengchuang, Fuzhou Hongsheng, Fujian Tianren, and Zhangzhou Deyousheng, for a consideration of HK$231.0 million. The completion of this round of acquisition transactions by the Group concludes the first round of asset injection by Sansheng Holdings. The significance of this is that the land reserves and saleable project resources of Sansheng Holdings is further enlarged, providing new momentum for added profitable growth in the future.
Sansheng Holdings management attending the extraordinary general meeting recently held in Hong Kong, from left to right included Mr. Xu Jianwen, Non-executive Director; Mr. Pan Dexiang, Non-executive Director; Ms. Cheng Xuan, Chief Executive Officer and Executive Director; Mr. Lin Rongbin, Chairman and Executive Director; Mr. Xiao Zhong, Independent Non-executive Director; Mr. Zhong Bin, Independent Non-executive Director.
Pursuant to the motion, Quanyao Holdings Co., Ltd., a wholly-owned subsidiary of Sansheng Holdings, entered into an agreement with Mega Regal, the controlling shareholder of the seller, on 27 September 2019 for the conditional purchase of the sales shares at a consideration of HK$231 million. The completion was paid by the issue and allotment of 22 million consideration shares at the issue price of HK$10.5 per consideration share, representing approximately 5.2% of the issued share capital of Sansheng Holdings on 27 September 2019, and upon completion, approximately 5.0% of the issued share capital enlarged by the issue of the Consideration Shares. The issue price represented a discount of approximately 0.9% to the closing price of HK$10.60 per share on 27 September 2019.
After the subsequent reorganisation, Sansheng Holdings will own a number of property assets in Fujian Province, China held by the controlling shareholder. The injection of property projects by Fujian Shengchuang, Fuzhou Hongsheng, Fujian Tianren and Zhangzhou Deyousheng will boost the Group's land reserve, hence substantially increase saleable land reserve area by more than 430,000 sq m with a saleable gross floor area of over 1,000,000 sq m. Both the large number and scale of these projects will create huge room for growth in the Group's results and is also conducive to its intensified development in economically vibrant regions such as the West Coast Economic Zone, Yangtze River Delta Economic Zone and Bohai Economic Rim. In addition, the robust growth in both residential and commercial properties and diversified businesses are expected to become significant income streams and further strengthen the influence of the Group's brand.
Sansheng Holdings actively implemented the Group's strategy to identify land in prime locations suitable for property development and investment in order to increase its land reserve and further promote development of the Group. The Group has acquired land plots in different cities across the PRC through acquisition and land bidding. As at 30 June 2019, the Group had a total of 15 property projects under development or held for future development, and the total site area of the land bank was approximately 796,554 sq m with the estimated total GFA of the land back approximately 2,513,901 sq m. In addition, three property projects located in Fujian province launched pre-sales during the first half of 2019, achieving a satisfactory performance. The turnover of Sansheng Holdings is expected to further soar in the near future along with the injection of acquisition projects.
Sansheng's Directors are confident about the sustained development of the property market in Fujian Province, and the Company will continue to seek new opportunities for property development, especially the residential property development in the PRC. The Directors are of the view that the acquisition provides a good opportunity for the Group to supplement its land reserve in Fujian Province, in line with the Company's strategy. Also, the terms of the Acquisition are fair and reasonable and in the interests of the Shareholders as a whole. The first round of capital injection will further enlarge the land bank of Sansheng Holdings, optimise the structure of its business, extend the geographic footprint of its projects and increase the revenue of the Company. In the future, Sansheng will continue adhering to its strategy of "Targeted Investment, High Caliber Team, Superior Products" in order to spur the Group to achieve excellent operational efficiency and outstanding profitability, and maximise the returns to its shareholders."
About Sansheng Holdings (Group) Co. Ltd.
Sansheng Holdings (2183.HK) has become the overseas listed platform and brand display window of Sansheng Group's real estate business from April 2017, and is principally engaged in property development and sales, and property investment. With the support from Sansheng Group, one of the top 100 real estate enterprises in China, Sansheng Holdings has actively implemented business restructuring and pushed forward with its project development. Currently, its projects are situated in eleven cities in China: Fuzhou, Ningde, Nantong, Longhai, Wenzhou, Harbin, Shenyang, Jinan, Qingdao, Wuxi and Hong Kong. Sansheng has also garnered numerous honours including "The Best Investment Value Award for Mainland China Real Estate Property Company Listed in Hong Kong Top 10" and "China's Real Estate Listed Company Top 10 in Growth and Development Capacity". Established in 1988, Sansheng Group started as an industrial business, and its real estate properties are strategically situated in more than 20 cities and has more than 60 development projects. Sansheng Group has invested in a number of companies including those engaged in education, advanced manufacturing, pension funds, health, Big Data, and more, and has become a large industrial investment group, with four key business segments including Sansheng Real Estate, Sansheng Education, Sansheng Health and Sansheng Technology.
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