KTK Group Co., Ltd. (603680.SH) plans to sell KHY assets and sign a memorandum to control international trade risks.

Announcement of KTK Group Co., Ltd. (603680.SH): In view of the fact that the company's controlling subsidiary KHY Electronic India Private Limited ("KHY") is facing constraints in business development and is in a continuous state of losses due to the current complex and volatile international trade environment, in order to focus on the company's strategic direction, concentrate on the core business, control international trade risks, and increase cash flow reserves, after careful decision-making by the management, KHY plans to cease the relevant business and sell its main assets. On January 18, 2025, through friendly negotiations, KHY signed a memorandum of understanding (MOU) with Ismartu India Private Limited ("Ismartu") to sell the aforementioned assets to Ismartu. The tentative transaction price is 1.33 billion Indian Rupees (excluding tax), which is equivalent to 112 million Yuan (excluding tax) at the current exchange rate. This transaction is still in the preliminary planning stage, and the specific transaction scheme and terms need further negotiation and verification. The final agreement signed will prevail in terms of the specific transaction scheme and terms.