YIDA CHINA (03639) plans to transfer properties to Dalian Hengye to offset some outstanding loan payments.

YIDA CHINA (03639) disclosed that the Dalian court ruled the outsourcing company to refund approximately RMB 2.966 billion to the Dalian Finance Bureau. On October 13, 2025, the company's wholly-owned subsidiary Dalian Changde, its wholly-owned subsidiary outsourcing company, and Dalian Finance Bureau, reached a set-off agreement. Under this agreement, Dalian Changde conditionally agreed to transfer all property rights to Dalian Hengye, and Dalian Hengye conditionally agreed to use RMB 2.7578 billion as part of the unpaid debt to acquire the property. The property is located in Dadonggou Village, Xinzaizi Street, Ganjingzi District, Dalian City. The land is designated for software outsourcing and research and development, with a land area of approximately 36,950.8 square meters and a planned construction area of about 74,500 square meters. Among them, the total construction area of five above-ground buildings is approximately 49,300 square meters, and the underground garage (including civil defense facilities and equipment rooms) area is about 25,200 square meters, all of which are still under construction. The construction and development of the property are currently suspended. The reason for selecting the property (suspended development asset) for the transaction is that it is the most favorable option for the company and is the only unencumbered asset located in Ganjingzi District, Dalian City. Due to the impact of the pandemic and financial pressures, the construction and development of the property have been suspended since 2021. During this period, the company has ceased investment while continuously monitoring market demand for industrial leasing. The company has considered various options to settle the unpaid debts, including but not limited to cash settlement and external financing. However, due to insufficient cash flow, the company cannot settle the unpaid debts. Additionally, according to China's financing framework, there are no specific loan categories available for compensation or refund, which hinders the company's ability to obtain bank financing to settle the unpaid debts.