SMART FISH (00139) subsidiary plans to acquire a property in Shenzhen, China for RMB 27.0157 million.

SMART FISH (00139) announces that on 15 October 2026 (after trading hours), the buyer, Daqi Culture Shenzhen Co., Ltd., and the lender, Yifeng Finance Limited (both being wholly-owned subsidiaries of the Company), entered into a sale and purchase agreement with the seller, Li Qiumin, and the borrowers (Li Qiumin and Xiao Ying), pursuant to which the seller agreed to sell and the buyer agreed to acquire the property at a total consideration of RMB 27.0157 million, which consideration will be offset on a dollar-for-dollar basis against the outstanding amounts owed by the borrowers to the lender. The property comprises 10 residential units in a property project located in Shenzhen, China. Based on a valuation of the property conducted using the market approach, the market value of the property is approximately RMB 30.711 million. The property project is named Shenzhen Zhenye City and is located in Longgang District, Shenzhen, China. The entire property project is a residential-commercial composite property project. To the best of the Company's knowledge, the property has obtained a land use right certificate, and the property has been completed and is ready for use. The Directors consider that the acquisition provides an investment opportunity to participate in the China property market. In view of the Group's business development, the Directors consider that the acquisition will enable the Group to obtain a stable source of income through leasing the property. In addition, the Group will benefit from the long-term appreciation of property prices in China. It should also be noted that the consideration will be settled by way of offsetting the outstanding amounts, which means that the Group will not have any cash outflow for the acquisition. Although the current China real estate market is still in a stabilization phase, the China property market has recently shown more positive signs (https://www.scmp.com/business/article/3355548/chinas-property-market-shows-more positive-signs-price-sales-upticks). The Company holds a positive view on the long-term growth of the China property market and agrees with the recent positive signs in the China property market as stated in the news article. The Company also notes that despite uncertainties in the global economy, the China economy has maintained growth, demonstrating the resilience of the China economy. With the long-term growth of the China economy, the Company believes that there is potential for long-term appreciation in China property prices.