Zensun Enterprises : ACQUISITION OF LAND USE RIGHTS IN LUOYANG CITY, HENAN PROVINCE, THE PRC

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ZENSUN ENTERPRISES LIMITED

正 商 實 業 有 限 公 司

（Incorporated in Hong Kong with limited liability）

(Stock Code: 185)

DISCLOSEABLE TRANSACTION

ACQUISITION OF LAND USE RIGHTS IN LUOYANG CITY,

HENAN PROVINCE, THE PRC

ACQUISITION OF LAND USE RIGHTS

The Board is pleased to announce that on 30 April 2021, Henan Xingshang, an indirect wholly-owned subsidiary of the Company, made one successful bid for the land use rights of the Land Parcel through listing for sale process in the Auction held by Luoyang City Natural Resources and Planning Bureau* (洛陽市自然資源和規劃局) for transfer of state-owned land use rights at a consideration of RMB673,900,000.

The Land Parcel is located at northeast corner of Silk Road Avenue and Qubei Road, Jianxi District* (澗西區絲路大道與渠北路東北角), Luoyang City, Henan Province, the PRC with a total site area of approximately 70,094.52 sq.m. and permitted plot ratio of between 1.0 and

3.2. The Land Parcel is designated for residential usage with term of use of 70 years and for commercial usage with the term of use of 40 years and for car parking spaces and civil air defense facility usage for underground floor with the term of use of 50 years.

LISTING RULES IMPLICATIONS

As one of the applicable percentage ratios calculated in respect of the Acquisition under Rule

14.07 of the Listing Rules exceeds 5% but is less than 25%, the Acquisition constitutes a discloseable transaction of the Company under the Listing Rules.

ACQUISITION OF LAND USE RIGHTS

The board ("Board") of directors ("Directors") of Zensun Enterprises Limited ( "Company") is pleased to announce that on 30 April 2021, Henan Xingshang Real Estate

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Company Limited* ( 河 南 興 商 置 業 有 限 公 司 ) ("Henan Xingshang"), an indirect wholly-owned subsidiary of the Company, made one successful bid for the transfer of state-owned land use rights of a land parcel with code no. LYTD-2021-33 (the "Land Parcel") for a consideration of RMB673,900,000 located in Luoyang City, Henan Province, the People's Republic of China (the "PRC") through listing for sale process (the "Acquisition") in the public auction ("Auction") held by Luoyang City Natural Resources and Planning Bureau* (洛陽市自然資源和規劃局). The consideration of the Acquisition was determined based on the Auction documents issued by Luoyang City Natural Resources and Planning Bureau. The Group will finance the Acquisition and the development of the Land Parcel with internal resources.

The Land Parcel is located at northeast corner of Silk Road Avenue and Qubei Road, Jianxi District* (澗西區絲路大道與渠北路東北角), Luoyang City, Zhejiang Province, the PRC with a total site area of approximately 70,094.52 sq.m. and permitted plot ratio of between 1.0 and 3.2. The Land Parcel is designated for residential usage with term of use of 70 years and for commercial usage with the term of use of 40 years and for car parking spaces and civil air defense facility usage for underground floor with the term of use of 50 years.

A sum of RMB627,700,000 for the Land Parcel has been paid by Henan Xingshang as the security deposit for the Auction. Pursuant to the procedures under the listing for sale process in the Auction, within two working days following the successful bid, Henan Xingshang shall submit qualification documents to Luoyang City Natural Resources and Planning Bureau for verification. Upon completion of the verification process, Luoyang City Natural Resources and Planning Bureau will issue a confirmation notice ("Confirmation Notice") in respect of the Land Parcel to Henan Xingshang. The land use rights grant contract in relation to the Acquisition will be entered between Henan Xingshang and Luoyang City Natural Resources and Planning Bureau for the Land Parcel on or before the date determined by Luoyang City Natural Resources and Planning Bureau as stipulated in the Confirmation Notice.

INFORMATION ON PARTIES TO THE ACQUISITION

Henan Xingshang is a company established in the PRC, an indirect wholly-owned subsidiary of the Company and its principal activity is property development.

Luoyang City Natural Resources and Planning Bureau, being the seller of the Land Parcel is a PRC Governmental body and is responsible for, among other things, administering the examination and approval of land planning, assignment and transfer of the land use rights of the state-owned land in Luoyang City, Henan Province, the PRC and the issue of various types of land certificates.

To the best of the Directors' knowledge, information and belief having made all reasonable enquiries, Luoyang City Natural Resources and Planning Bureau and its beneficial owner are third parties independent of the Group and its connected persons.

REASONS FOR AND BENEFITS OF THE ACQUISITION

The Company and its subsidiaries (collectively "Group") are principally engaged in property development, property investment, project management and sale services and securities

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trading and investment. The Board believes that the Acquisition complements the Group's strategy in expanding its development in Henan Province and other first and second tier cities in the PRC.

The Directors further consider that the Acquisition is a transaction of revenue nature is carried out in the ordinary and usual course of business and is on normal commercial terms, which is fair and reasonable and in the interests of the Company and its shareholders as a whole.

The Company will continue to seek viable business opportunities in accordance with its overall strategy. The Company will make use of the Group's financial, human and technological resources to enhance its portfolio, asset base and brand image.

LISTING RULES IMPLICATIONS

As one of the applicable percentage ratios calculated in respect of the Acquisition under Rule

14.07 of the Rules Governing Listing of the Securities on the Stock Exchange of Hong Kong Limited (the "Listing Rules") exceeds 5% but is less than 25%, the Acquisition constitutes a discloseable transaction for the Company under the Listing Rules.

By Order of the Board

Zensun Enterprises Limited

Zhang Jingguo

Chairman, Chief Executive Officer

and Executive Director

Hong Kong, 30 April 2021

As at the date of this announcement, the executive Directors are Mr. Zhang Jingguo and Mr. Zhang Guoqiang; the non-executive Director is Ms. Huang Yanping and the independent non-executive Directors are Mr. Liu Da, Dr. Liu Qiao and Mr. Ma Yuntao.

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