ZHONG AO HOME (ASX: 01538) has announced that on July 21, 2026, Xin Zhao (a wholly-owned subsidiary of the Company) entered into a joint venture agreement with Ms. Jiang Caiying, under which the parties agreed to jointly operate the joint venture group.

The agreement outlines the rights and responsibilities of Xin Zhao and the British Virgin Islands holding company as the ultimate shareholders of the joint venture group, as well as the structure and business operations of the joint venture group.

Subject to the terms and conditions of the joint venture agreement, Xin Zhao has conditionally agreed to cause the Company to issue convertible bonds with a total principal amount of HK$306 million to the British Virgin Islands holding company.

Based on an initial conversion price of HK$0.93 per conversion share (subject to adjustment), the full exercise of the conversion rights would result in the allotment and issuance of up to approximately 329 million conversion shares.

This represents about 38.50% of the total issued shares as of the announcement date, and approximately 27.80% of the enlarged issued share capital following the allotment and issuance of conversion shares upon full conversion of the convertible bonds, assuming no change in the Company's issued share capital from the announcement date until the full conversion of the bonds at the initial conversion price.

While the Group will continue to focus on, operate, and develop its core business, it also intends to launch computing and cloud services operations through the joint venture company.

The Company anticipates that this new business venture will generate additional operating revenue and profit for the Group, contributing to the sustained enhancement of its profitability.

The establishment of the joint venture will not only help the Group explore business development, cooperation, and investment opportunities in the computing and cloud services sector but will also enhance the Group's property management services by providing big data analytics.

Furthermore, by utilizing AI intelligent agents and optimizing management services through AI-powered customer service, the initiative aims to create comprehensive synergies for the Group.

This is expected to improve the efficiency and effectiveness of the Group's property management services while reducing labor and operational costs.

Through the application of computing and cloud services, the Group aims to elevate its service quality and profit margins, facilitating a strategic repositioning from a standard service provider to a high-value property technology platform.