Tang Junjie and others acquire nearly one billion in installments, securing over 30% equity in Dexin Service's core subsidiary

Lijiang Finance Li Lan

DeXin Service Group’s disclosed capital increase announcement has attracted market attention.

On February 23, DeXin Service Group (02215.HK) announced that Shengquan Technology, Zhida Xiaorui, and the target company DeXin Shengquan Property Services Co., Ltd. (all of which are indirect non-wholly owned subsidiaries of the company) entered into a capital increase agreement with DeQing Kaisi Bo.

According to this, DeQing Kaisi Bo conditionally agreed to invest RMB 96,912,442.40 to subscribe for approximately 30.0% of the enlarged equity of the target company after the capital increase.

Following the completion, Shengquan Technology, Zhida Xiaorui, and DeQing Kaisi Bo will hold approximately 61.8%, 3.3%, and 34.9% of the target company’s equity, respectively. The target company will remain a non-wholly owned subsidiary of the group.

It is reported that on September 15, 2025, Shengquan Technology, Zhida Xiaorui, and the target company entered into a pre-round capital increase agreement with DeQing Kaisi Bo. DeQing Kaisi Bo conditionally agreed to invest RMB 10.3 million to subscribe for approximately 4.9% of the target company’s equity after the pre-round capital increase. After the first completion, Shengquan Technology, Zhida Xiaorui, and DeQing Kaisi Bo will hold approximately 90.3%, 4.8%, and 4.9% of the target company’s equity, respectively.

After two additional capital increases by DeQing Kaisi Bo, DeXin Service’s shareholding in its core subsidiaries will be diluted to about 65.1%, while DeQing Kaisi Bo’s stake will rise to 34.9%.

It is known that the target company is the group’s main operational subsidiary in China. The group mainly provides property management services in China. As of June 30, 2025, the total managed construction area of the target group was approximately 38.3 million square meters.

DeQing Kaisi Bo mainly serves as the employee shareholding platform for the target group. As of the announcement date, the partnership interests of DeQing Kaisi Bo are held by Executive Director Tang Junjie (46.91%), Executive Director Zheng Peng (23.46%), the company’s Executive Vice President Liu Yibing (23.46%), and Shengquan Workers’ Union (6.17%). Mr. Liu Yibing is the sole general partner of DeQing Kaisi Bo.

Since Tang Junjie and Zheng Peng together hold about 70.4% of the partnership interests in DeQing Kaisi Bo, the company is considered an associate of the group.

The nearly RMB 100 million acquisition payment is split into two installments: 56.9% payable upon completion (no later than June 30, 2026), and the remaining 43.1% payable no later than December 31, 2027.

DeXin Service stated that, based on preliminary estimates, the group is expected to record a net gain of approximately RMB 96.2 million from the capital increase, which is intended to be used as operating cash flow to develop the property management business of the target group.

As of the announcement date, the board members of DeXin Service include Executive Directors Mr. Hu Yiping, Mr. Tang Junjie, and Ms. Zheng Peng; as well as Independent Non-Executive Directors Dr. Wang Yongquan, Mr. Rui Meng, and Mr. Yang Xi.