JD.com, Qihoo 360 buy $63m stake in Chinese property manager Colour Life

Employees work at a JD.com logistic centre in Langfang, Hebei province, November 10, 2015. REUTERS/Jason Lee

China’s largest e-commerce site JD.com and online security software company Qihoo 360 have acquired a combined stake worth HK$491 million ($63 million) in Colour Life Services Group, the country’s largest property management firm by residential floor space.

In a disclosure to the Hong Kong exchange, Colour Life said JD.com has agreed to subscribe to 71.15 million new shares at HK$5.22 per share, for a total of HK$371.4 million ($47.6 million).

The acquisition gives JD.com a 5 per cent stake in Colour Life, which provides tech-enabled property management to residents across 268 Chinese cities in seven major regions.

The transaction will be carried out by Volga Innovation Limited, an indirect wholly-owned subsidiary of JD.com.

Colour Life also entered into a subscription agreement with Beijing-based Qihoo 360, the Chinese mobile security software maker, for the subscription of approximately 23 million shares at HK$5.22 per share, for a total of HK$120 million ($15.3 million).

The agreement was signed by Qifei International Development Co, an indirect wholly-owned subsidiary of Qihoo 360.

When the deal is completed, Qihoo 360 will raise its stake in Colour Life from 1.54 per cent to 3.05 per cent, according to the disclosure. Qihoo 360 is controlled by Zhou Hongyi, a non-executive director at Colour Life.

Fantasia Holdings Group will continue to hold a majority stake in the company at 51.69 per cent while Splendid Fortune Enterprises will have a 15.25 per cent shareholding.

Colour Life said its agreement with JD.com will enable it to raise funds and broaden its capital base. It also fosters greater cooperation with JD.com in its e-commerce, logistics, finance, and technology businesses.

Its deal with Qihoo 360 will expand the two companies’ cooperation in technologies, such as core security capacity, big data, IoT, and artificial intelligence, Colour Life said.

The deal will “effectively enhance the brand recognition and influence of Qihoo 360 in urban and community security, laying a solid foundation for establishing urban security brain and creating macro-security industrial ecosphere”.

Shenzhen-headquartered Colour Life Services Group has three main businesses – property management, community leasing, and engineering services. It focuses on providing an integrated property management platform, such as smart logistics, intelligent building management, and community services.

A spin-off of Shenzhen-based property developer Fantasia Holdings, Colour Life listed on the Hong Kong bourse in 2014, becoming the first mainland property management company with a presence on the main share-trading board.

In its annual report, Colour Life said it made a revenue of 3.6 billion yuan ($523.3 million) in 2018, up 74.5 per cent year-on-year, which brought in 485 million yuan ($15.3 million) as net profit, up 35.1 per cent year-on-year.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.