HONGHUA GROUP (00196) plans to sell approximately 8576.4 million yuan of shares of Chengdu Jin Kong Financial Leasing Co., Ltd., totaling approximately 6.9152% of the equity.

HONGHUA GROUP (00196) announced that on October 16, 2025, its subsidiary Honghua Holdings entered into an agreement with Chengdu Jiaotzi, and another subsidiary Sichuan Honghua also entered into an agreement with Chengdu Jiaotzi on the same day. According to the agreements, Honghua Holdings and Sichuan Honghua agreed to sell a combined approximately 6.9152% equity interest in Chengdu Jinkong Finance Leasing Co., Ltd. to Chengdu Jiaotzi for a total consideration of approximately RMB 85.764 million. As of the date of this announcement, the Group holds approximately 6.9152% equity interest in the target company. Upon completion of the sale, the Group will no longer hold any equity interest in the target company. As part of the Group's strategic development plan, it will continue to optimize its asset structure, focus on core businesses, divest non-core and non-competitive enterprises to further enhance resource allocation efficiency. The sale will help the company implement the State-owned Assets Supervision and Administration Commission's requirements for central enterprises holding shares in financial companies, promote the orderly divestment of non-core assets in the financial industry, reduce the risk of non-core financial business, and further optimize the Group's equity structure and capital allocation. By transferring the relevant equity through public listing, the Group can realize asset monetization, increase liquidity, improve the asset-liability structure, reduce financial expenses, and support the Group's focus on core businesses, transformation and upgrade, and high-quality development. The Board of Directors believes that the sale is in the overall interest of the company and all shareholders.