A-LIVING (03319) signed a framework agreement with Country Garden Holdings.

A-LIVING (03319) announced on April 17, 2025 (after trading hours) that Yuexiu Holdings and the company have entered into a framework agreement. According to this agreement, Yuexiu Holdings will sell and the company will acquire 70% of the equity of Target A, Anhui Anpu Environmental Technology Co., Ltd.; and 100% of the equity of Target B, Liaocheng Ya Jule Environmental Technology Co., Ltd. Under the framework agreement and on the same day, the buyer Beihai Leqi Investment Co., Ltd. (a wholly-owned subsidiary of the company) and the seller have separately entered into agreements. According to these agreements, the buyer agrees conditionally to acquire and the corresponding seller agrees to sell 70% of the equity of Target A; and 100% of the equity of Target B, for a total consideration of RMB 60.6 million. The announcement stated that as of the date of the announcement, there were trade receivables and other balances with related parties between the company and Yuexiu Holdings. After fair negotiations, Yuexiu Holdings and the company have reached an agreement to repay the outstanding trade receivables to Yuexiu Holdings with cash consideration, in order to recover some of the mature receivables and reduce related bad debt risks. These targets are mainly engaged in environmental protection-related businesses, and are expected to be organically combined with the company's urban services sector, forming certain regional and customer synergy effects. These targets have the ability to operate independently and expand, and their operational cash flow can cover their own business development needs. It is expected that they will not have any significant impact on the group's main business and cash flow. The group may seek to operate with third parties through leasing of factory buildings or equipment, or sell the equity of these targets to third parties in exchange for cash returns. In the future, the group will continue to focus on its core property management business, develop its core business with a light asset model, strengthen its collection efforts and cash flow management, actively negotiate with all parties on the balances of trade receivables, and ensure effective recovery measures.