Impression Dahongpao Co., Ltd. (Impression DHP) has publicised a historical acquisition involving the repurchase of fixed assets valued at RMB13.13 million. The deal, signed on 9 February 2026 between wholly-owned subsidiary Mount Wuyi Impression Dahongpao Cultural Tourism Co., Ltd. (purchaser) and Fujian Spring Restaurant Management Co., Ltd. (vendor), falls within the 5%–25% percentage ratio threshold and is therefore classified as a discloseable transaction under Chapter 14 of the Hong Kong Listing Rules.
Key Transaction Terms • Assets: Building construction and installation works, decorative works, plus ancillary and supporting facilities at “Impression Tianjie (Impression Jianzhou)” in the Dahongpao Experience Center, Tea Expo Park, Wuyishan City, Fujian. • Consideration: RMB13.13 million, derived from an independent valuation; payment split into four instalments—RMB4.97 million (up-front), RMB5.34 million (set-off against vendor payables), RMB1.00 million (within seven business days of agreement effectiveness) and RMB1.81 million (upon asset delivery). • Vendor Warranties: Legal title, absence of encumbrances, and indemnity against undisclosed liabilities.
Valuation Breakdown (Cost Approach) • Building construction & installation works: RMB10.98 million (benchmark date 31 July 2025; newness rate ≈ 86.06%). • Decorative works: RMB1.76 million (benchmark date 31 July 2025; newness rate ≈ 73.03%). • Ancillary & supporting facilities: RMB0.38 million (benchmark date 24 September 2024; newness rate ≈ 55.09%). Independent valuer Fujian Wuyi Assets Appraisal Real Estate Land Appraisal Co., Ltd. conducted the appraisal.
Strategic Rationale The repurchase follows termination of a prior cooperation agreement with the same vendor. Impression DHP aims to renovate and relaunch the Impression Tianjie project with a new partner, while safeguarding the 15-year operating rights to the Mount Wuyi Tea Expo Park. Management states the buyback supports long-term strategic development and optimises resource allocation.
Compliance Lapse and Remedial Measures Impression DHP acknowledged a delay in announcing the Assets Repurchase Agreement, attributing it to misjudgement over disclosure scope. Corrective actions include: 1. Comprehensive review and enhancement of internal controls for notifiable and connected transactions. 2. Annual internal-control reassessment overseen by the compliance department and audit committee. 3. Targeted staff training on Listing Rule requirements. 4. Ongoing engagement of external legal and professional advisers.
The Board considers the acquisition terms fair and believes the transaction serves the interests of all shareholders.
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