(Yicai Global) Jan. 21 -- Shares of China Resources Mixc Lifestyle Services jumped after the firm announced its second acquisition involving another Chinese property management firm this month.

CR Mixc's stock price [HKG: 1209] rose as much as 7.2 percent to HKD43 (USD5.50) intraday. The shares are more than 17 percent up this year.

The state-backed real estate company intends to purchase all the equity of Nantong-based Changle, a firm controlled by conglomerate Zhongnan Group's senior management, paying up to CNY2.3 billion (USD356.4 million), the Hong Kong-headquartered buyer said in a bourse filing yesterday. Moreover, CR Mixc plans to buy a 1 percent stake in Jiangsu province-based property management firm Zhongnan from Hong Kong-based Lehuo Property.

The target firms are linked so after the transaction, CR Mixc will effectively control Zhongnan. Changle had 99 percent of Zhongnan's equity as of last December. Lehuo held the remaining 1 percent stake.

The change of ownership may pause Zhongnan's listing plans, an insider told Yicai Global. The former parent may have chosen to sell the unit because it can earn more cash in this way than via an initial public offering, the person added. Zhongnan passed Hong Kong Stock Exchange's listing review last November.

The move follows another similar one. On Jan. 5, CR Mixc said it intends to purchase another firm in the same field, Yuzhou Property Service, for up to CNY1.1 billion in its first acquisition scheme after its initial public offering in December 2020. State-owned conglomerate China Resources Group has a majority stake in CR Mixc.

CR Mixc aims to expand its assets via mergers and acquisitions to boost its profits, the firm said in its filings regarding the latest two purchases. The company had 122 million square meters of property under management as of June 2021. It earned CNY806 million (USD127.1 million) in net profit in the first six months of that year and its revenue was CNY4 billion, according to its earnings report.

Zhongnan manages almost 51.5 million sqm of property across Chinese regions, including Shandong, Zhejiang, and Sichuan provinces, according to yesterday's filing. Its area under management is expected to rise to exceed 90 million sqm in five years. Last year, the firm made CNY175.9 million (USD27.7 million) in net profit.

Zhongnan Group is a large non-state-owned firm whose business spans real estate, construction, and finance. Its core unit Zhongnan Construction Group went public in Shenzhen via a backdoor listing in 2009, according to its website.

Editors: Dou Shicong, Emmi Laine, Xiao Yi