KTK Group Co., Ltd. (603680.SH) plans to sell 100% equity of its subsidiary and signs a framework agreement to control international trade risks.

Announcement from KTK Group Co., Ltd. (603680.SH): The company (referred to as the "Party C") has signed an Investment Framework Agreement with Changzhou Wujin Comprehensive Bonded Zone Investment and Construction Co., Ltd., Huang Jun, and Huang Chunhong (referred to as the "Purchaser" or "Party A") on November 11, 2024 regarding the acquisition of Changzhou Heyuan Track Technology Co., Ltd. The company intends to sell 100% equity of its wholly-owned subsidiaries Changzhou Heyuan Track Technology Co., Ltd. and Jiangsu Mingxin Traffic Equipment Co., Ltd. (referred to as the "Target Companies" or "Party B") to the Purchaser, who intends to purchase the equity of the Target Companies through cash payment. The company intends to sell 100% equity of the Target Companies in this transaction based on the overall operational development needs of the company, which align with the company's future strategic layout. This move is aimed at helping the company control international trade risks, optimize asset and business structures, increase cash flow reserves, and further enhance the company's overall competitiveness and sustainable profitability.