HEVOL SERVICES plans to sell 51% equity of Jiangsu Shenhua Times Property.

HEVOL SERVICES (06093) announced that on May 9, 2025, the seller (an indirect wholly-owned subsidiary of the Company) entered into a sale and purchase agreement with the buyer Jingjiang Zhihui Network. The seller has agreed to sell, and the buyer has agreed to acquire, 51% equity interest in the target company, Jiangsu Senhua Times Property Group Co., Ltd., for a consideration of RMB 30.5 million, subject to the terms and conditions of the agreement. The Group continues to prioritize a growth strategy based on sustainability and high-quality performance, aiming to enhance its business portfolio for high-quality development. Despite efforts to improve the operational performance of the target company, its average accounts receivable cycle has not met expectations due to its relatively long duration. With the changing landscape of the Chinese economy, a slowdown in the real estate market, and rising construction costs caused by global supply chain disruptions, the momentum of development in the real estate and related industries has been suppressed, making the aforementioned challenges more severe. Against this backdrop, the decision to proceed with the sale reflects the Group's forward-looking action to strengthen adaptability and financial stability. The sale of the target company will enable the Group to streamline its business focus, reduce risks associated with weaker assets, and redirect resources to businesses with the potential for greater returns. In the continuing market volatility, the sale is expected to result in a net proceeds of approximately RMB 30.44 million. These funds will be used to drive strategic priorities, enabling the Group to respond to evolving industry trends and consolidate its market position.