The board of directors of Financial Street Property Co., Limited announced that the Company and its partner established a joint venture, by capitalising on their strengths in management and resources, to carry out property management and related businesses, accelerate the pace of market expansion and expand the business scale of the Company. Proportion of equity
interest: Financial Street Property Co., Limited - 51% and Luoyang Urban Development Investment Group Co. Ltd. - 49%. Date of establishment: 18 December 2023. Registered capital: RMB 10 million (shareholders will make capital contribution in proportion to their shareholdings). Business operation: The main businesses of the Joint Venture are property management and related services. According to the development plan, the Joint Venture plans to undertake the property projects managed by Luoyang UDI and leverage on the management experience and advantages of both shareholders of the Joint Venture to provide better property services to owners. At the same time, the Joint Venture will capitalise on the resources of both shareholders to continue to develop the property services market for business sector, public construction, and cultural and tourism. Reasons for and benefits of the establishment of the Joint Venture: The Company has always regarded joint venture as one of the
important ways of external expansion and aims to jointly develop markets and increase business scale by cooperating
with top-notch enterprises in the industry. Luoyang UDI (the other party to the Joint Venture), which has extensive experience in real estate development and operations in Henan, has also been actively seeking opportunities to cooperate with outstanding property service companies to continuously improve its business operation and management to provide customers with better property management services. The establishment of the Joint Venture will enable the shareholders of both parties to carry out in-depth cooperation, innovate and develop diversified businesses driving towards the improvement of urban functions, give
full play to resource synergy, jointly expand market share in the central region, and generate better returns for shareholders.