SHUI ON LAND (00272) plans to participate in the development of Shanghai projects through joint ventures.

SHUI ON LAND (00272) announced that on June 19, 2025, Shanghai Ruixinli (an indirect wholly-owned subsidiary of the company) and Shanghai Xinfu Li and the joint venture company entered into a shareholder agreement regarding the joint venture arrangement to participate in the proposed acquisition. Both before and after the signing of the shareholder agreement, Shanghai Ruixinli and Shanghai Xinfu Li respectively hold 30% and 70% equity interests in the joint venture company. The proposed acquisition refers to the joint venture company's plan to acquire 50% equity interest in Shanghai Yongye City Urban Renewal Development Co., Ltd. through a public bidding process, with a minimum price of RMB 2.89365 billion. After the completion of the proposed acquisition, the joint venture company will hold a 50% equity interest in the project company, making it the sole owner of the land use rights of the property. The property is located in plots 501, 504, and 505 of Yuyuan Street, Huangpu District, Shanghai, bordered by Xizang South Road to the west, Fangbin Middle Road to the south, Renmin Road to the east, and Taoyuan Road to the north, with a total land area of 49,175 square meters, expected to be mainly used for the development of residential, commercial, and ancillary facilities. The announcement states that establishing the joint venture company, providing guarantees, and the transactions to be carried out under it are in line with the company's business development strategy, allowing the company to focus more on becoming a primary commercial real estate owner and operator. Through cooperation with Shanghai Xinfu Li, the group will have the opportunity to participate in the development of a prime location project in Shanghai, a major metropolitan area in China. The directors believe that the establishment of the joint venture company and the subsequent project development will provide the group with highly attractive business opportunities, help diversify the group's sources of income, and further enhance the overall project development portfolio of the group.