CHINA JINMAO (00817) plans to exercise its right of first refusal.

CHINA JINMAO (00817) announced that on June 10, 2022, the company entered into agreements for equity transfer and debt transfer with its affiliated companies Dingmao Real Estate and Jiaxing Investment, as well as Huafu Securities (on behalf of the special plan). The company also prepared to establish an Asset Backed Securities Plan on June 30, 2022, named Jinmao Huafu - Changsha Jinmao Plaza North Tower Phase II Green Asset Backed Special Plan (Carbon Neutral), in order to securitize the target properties held by Dingmao Real Estate and raise funds for the group's operations and business development. On the same day, Dingmao Real Estate also entered into a priority agreement with Jiaxing Xiangmao, Jiaxing Investment, and Huafu Securities (on behalf of the special plan), granting Jiaxing Investment or its designated entities the right to purchase all priority assets under the special plan that are not held by them (i.e. the equity and debt of the target properties held by Huafu Securities (on behalf of the special plan) on behalf of Dingmao Real Estate). On January 22, 2025, the company's indirectly wholly-owned subsidiary Beijing Yicheng was designated as the successor priority purchaser by Jiaxing Investment. Beijing Yicheng issued a notice to exercise the priority purchase right to Huafu Securities on the same day, with a proposed purchase price not exceeding RMB 1.323 billion, subject to the final state-owned asset evaluation filing results. As the special plan entered the exercise lock-up period on January 9, 2025, facing the exit demands of some investors in the special plan, the group intends to exercise the priority purchase right. Upon completion of the exercise of the priority purchase right, all securities can be cancelled, ending the continuation of the special plan. Therefore, by being designated as the successor priority purchaser and exercising the priority purchase right, acquiring ownership of the target assets can provide convenience for the group's future financing methods to strengthen the group's financial position and expand its capital base, promoting future development.