BEIJING, March 18, 2020 /PRNewswire/ -- Phoenix Tree
Holdings Limited ("Danke" or the "Company") (NYSE: DNK), one of the
largest co-living platforms in China with the fastest growth, today announced
its entry into investment and cooperation agreements with the local
government of the Huaqiao Economic Development Zone ("Huaqiao EDZ")
in Kunshan, Jiangshu Province, China.
Pursuant to the agreements, Danke will establish a wholly-owned
subsidiary in the Huaqiao EDZ (the "Huaqiao Subsidiary"), which
will then form a joint venture with Kunshan Yinqiao Holding Group
Co., Ltd. ("Kunshan Yinqiao"), an investment entity of the local
government. The Huaqiao Subsidiary will make a capital contribution
of RMB625 million in exchange for
51.02% equity interest in the joint venture while Kunshan Yinqiao
will make a capital contribution of RMB600
million in exchange for the remaining 48.98% stake. The
joint venture will use all the capital contributions to develop the
co-living apartment business. Danke is expected to control and
consolidate the joint venture in Danke's consolidated financial
statements.
It is also agreed that the Huaqiao Subsidiary and Kunshan
Yinqiao will not transfer their respective equity interests in the
joint venture for a period of eight years after the capital
contributions to the joint venture are completed. After the eight
years, Kunshan Yinqiao will have the right to require the Huaqiao
Subsidiary or its designated party to repurchase all of Kunshan
Yinqiao's equity interest in the joint venture at a price equal to
Kunshan Yinqiao's initial capital contribution of RMB600 million plus interest accrued on such
amount calculated at an annual interest rate equal to the PBOC's
benchmark rate (plus certain spread if the Huaqiao Subsidiary and
its affiliates established in the Huaqiao EDZ contribute tax
revenues to the local government of less than a certain amount in
the aggregate in the eight-year period). To secure such repurchase
obligation, the Huaqiao Subsidiary will pledge all of its equity
interest in the joint venture to Kunshan Yinqiao upon completion of
Kunshan Yinqiao's capital contribution to the joint venture.
The local government expects to provide certain benefits and
support to the local Danke entities, including but not limited to
assist with bank financing, offer talent retention incentives, and
provide government awards.
ABOUT DANKE
Danke, one of the largest co-living platforms in China with the fastest growth, is redefining
the residential rental market through technology and aims to help
people live better. Empowered by data, technology, and a
large-scale apartment network, Danke's vibrant and expanding
ecosystem connects and benefits property owners, residents, and
third-party service providers, and delivers quality and
best-in-class services through an innovative "new rental" business
model featuring centralization, standardization, and a seamless
online experience. Danke was founded in 2015 and is headquartered
in Beijing, China. For more
information, please visit ir.danke.com.
SAFE HARBOR STATEMENT
This press release contains forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates" and similar statements. Among other things,
the business outlook and quotations from management in this
announcement, as well as Danke's strategic and operational plans,
contain forward-looking statements. Danke may also make written or
oral forward-looking statements in its filings with the U.S.
Securities and Exchange Commission (the "SEC"), in its annual
report to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about Danke's beliefs and expectations,
are forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: Danke's goals and strategies; Danke's future business
development, results of operations and financial condition; Danke's
ability to maintain and enhance its ecosystem; Danke's ability to
expand its apartment network and resident base, meet evolving
market trends, adapt to changing demands of property owners and
residents and improve the effectiveness of its technology system;
and fluctuations in general economic and business conditions in
China and assumptions underlying
or related to any of the foregoing. Further information regarding
these and other risks is included in Danke's filings with the SEC.
All information provided in this press release and in the
attachments is as of the date of this press release, and Danke does
not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
CONTACTS
Investor Relations Contact
Danke IR
Email: ir@danke.com
Bill Zima
ICR, Inc.
Phone: +1 203-682-8200
Media Relations Contact
Danke PR
Email: pr@danke.com
Edmond Lococo
ICR, Inc.
Phone: +86 (10) 6583-7510
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SOURCE Phoenix Tree Holdings Limited
