A-Living Services (03319) rose more than 6% in afternoon trading. As of press time, it was up 5.42% at HK$1.945, with turnover of HK$6.8613 million.

On the news front, on October 12, the Hong Kong High Court adjourned the hearing of the winding-up petition against Agile Group to December 7, granting Agile Group another restructuring window of approximately two months. It is reported that on October 5, Agile Group announced a plan to issue a total of approximately 9.199 billion new shares, representing approximately 64.6% of the total share capital after the restructuring is completed, in exchange for approximately US$5.183 billion in offshore financial debt. If the plan is implemented, offshore creditors will become the actual controllers of Agile Group, and the equity of the original founding shareholders will be diluted to a secondary position.

It is worth noting that A-Living Services reported first-half revenue of RMB 6.06 billion and profit attributable to shareholders of RMB 317 million. As of the end of June, the largest shareholder of A-Living Services remained Zhongshan A-Living Enterprise Management Services Co., Ltd., a subsidiary of Agile Group. If the restructuring plan is implemented, creditors may indirectly hold equity in A-Living Services.

Many investors believe that it is precisely the future dividend potential of A-Living Services that serves as the most important support for creditors to accept a low recovery rate plan.