ZHENGYE INT'L (03363) subsidiary intends to sell a property in Zhongshan City for 20.096 million yuan.

ZHENGYE INT'L (03363) announced that on June 20, 2025, the seller, Zhongshan Yongfa Intelligent Manufacturing Co., Ltd. (an indirect wholly-owned subsidiary of the Company), entered into a sales agreement with the buyer, Zhongshan Chenxi Plastic Products Co., Ltd., pursuant to which the seller has agreed to sell and the buyer has agreed to purchase a property for a total consideration of RMB 20.096 million. The property is located in Factory No. 7 of Zhongshan Songwan Hui Valley Smart Manufacturing Project in Xintang Community, Huangpu Town, Zhongshan City, China. The land use area of the property is 36,413 square meters, and the building area is 4,821.6 square meters. According to the announcement, the land where the property is located was originally used for the Group's paper raw material storage. In order to increase the utilization of the land, the Group responded to the call for "three old" renovation by the Zhongshan Municipal Government and applied for the reconstruction of the land, which was approved in November 2022 (the project). The first phase of the project started in October 2023, which involves the construction of six factories with a total building area of approximately 26,693.03 square meters. As of the date of this announcement, the first phase of the project has been completed. The property being sold in this transaction (Factory No. 7) is one of the buildings completed in the first phase of the project. The Board of Directors believes that the sale is a good opportunity for the Group to realize the value of the property at a reasonable price, and the proceeds from the sale can be used for the development and construction of the project or to supplement the Group's operating funds.