Songcheng performance to acquire Songcheng industrial, amend articles

Songcheng Performance Development Co., Ltd. (Songcheng Performance) announced its plan to acquire 100% equity in Hangzhou Songcheng Industrial Co., Ltd. (Songcheng Industrial) from its controlling shareholder, Hangzhou Songcheng Group Holdings Co., Ltd. The transaction, valued at 96,300 yuan, is based on a valuation report which assessed Songcheng Industrial's shareholder equity at 96,342.59 yuan as of October 31, 2025. This represents a valuation increase of 77,912.13 yuan (422.74%) over its book value of 18,430.46 yuan, primarily due to the increased value of land use rights and property.

The acquisition is considered a related-party transaction and was approved by Songcheng Performance’s ninth board of directors on November 25, 2025, with related parties recusing themselves. The deal, which aims to expand the Songcheng Scenic Area, streamline operations, and resolve previous related-party transactions, will make Songcheng Industrial a wholly-owned subsidiary.

The company's articles of association will be updated to reflect a new registered capital of 2,624,680,340 yuan, following the completion of restricted stock incentive plan registrations. These changes, along with the acquisition, await final approval from regulatory bodies.