RUNHUA SERVICE (Runhua Living Service Group Holdings) announced a connected and disclosable transaction to purchase a commercial villa-type property in Jinan’s Huaiyin District for RMB 40.00 million (VAT inclusive).
The buyer is Shandong Runhua Property Management, an indirectly wholly-owned subsidiary of RUNHUA SERVICE. The seller, Shandong Diping Tianyu Real Estate, is an indirectly wholly-owned subsidiary of Hang Qian Holdings and is 100% ultimately controlled by Mr. Luan Hangqian, a non-executive director and controlling shareholder of RUNHUA SERVICE, making the deal a connected transaction under Hong Kong’s Listing Rules.
Transaction highlights • Asset: One commercial/office unit in the Diping Luwan project, completed in 2018, with a gross floor area of about 2,709 sq m. • Consideration: RMB 40.00 million, to be settled in cash within 10 days after all Listing Rule procedures and independent shareholder approval are completed. • Valuation: RMB 42.30 million (Asia-Pacific Consulting and Appraisal; 31 May 2026, market comparison method). The agreed price reflects a 5.44 % discount to appraised value. • Current book value: approximately RMB 17.98 million as at 31 March 2026. • Mortgage: Existing pledges to be released by the vendor within 10 days of approvals.
Strategic rationale RUNHUA SERVICE plans to convert the property from self-use to leasing, targeting annual net rental income of about RMB 2.50 million. The purchase supports the group’s “Shandong Focus” strategy and expands its investment-property leasing portfolio in its core market.
Financial impact Post-completion, the asset will be recorded as an investment property at cost. Payment will be funded from internal resources, reducing cash but is not expected to materially affect net assets or working-capital sufficiency.
Governance and timetable Given the connected nature, the deal requires independent shareholders’ approval. An extraordinary general meeting is scheduled for 7 August 2026 in Jinan. Controlling shareholders Mr. Luan Hangqian, Mr. Luan Tao and their associates (combined 54.90 % stake) will abstain from voting. An Independent Board Committee endorses the transaction, and Rainbow Capital, acting as independent financial adviser, concludes the terms are fair and reasonable.
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