Dexin Services Group Limited (2215) announced details of two capital increases in its indirect non-wholly owned subsidiary, Dexin Shengquan Property Services Co., Ltd. (“Target Company”). The first was completed in September 2025 with a 10.30 million renminbi injection, and the second is a proposed 96.91 million renminbi injection. Both resulted in adjustments to shareholding structures and are treated as deemed disposals under the Listing Rules.

After the previous capital increase of 10.30 million renminbi, Deqing Kaisibo Enterprise Management Partnership Enterprise (Limited Partnership) (“Deqing Kaisibo”) obtained a 4.90% stake in the Target Company, diluting Dexin Services’ effective stake to 95.10%. In the new agreement dated 23 February 2026, Deqing Kaisibo would raise its holding to 34.90% through the 96.91 million renminbi capital contribution, bringing Dexin Services’ combined interest via subsidiaries to 65.10%. The Target Company will remain a non-wholly owned subsidiary of Dexin Services.

Deqing Kaisibo’s ultimate beneficial owners include certain executive Directors and employees of Dexin Services, rendering the latest subscription a major disposal and connected transaction. The net proceeds of approximately 96.20 million renminbi are intended primarily for smart security and safety upgrades, market expansion, facility operation enhancements, cleaning services automation, and broader service improvements within the Target Group’s property management operations in China.

According to financials, the Target Group posted revenue of 955.80 million renminbi and profit after tax of 75.11 million renminbi in 2023. Its consolidated net asset values as of 31 December 2024 and 30 June 2025 were 518.70 million renminbi and 565.90 million renminbi, respectively. An extraordinary general meeting will be convened to seek independent shareholders’ approval for the proposed transaction, and a circular with further details is expected to be dispatched on or around 27 February 2026.