XINYUAN PM(01895) subsidiary entered into asset offset agreement

XINYUAN PM (01895) announced that on November 25, 2025, Xinyuan Technology (a wholly-owned subsidiary of the company) entered into Asset Offset Agreement No. 1 with a related company of Xinyuan Real Estate to transfer a group of properties to Xinyuan Technology for a total consideration of RMB 89.0731 million. The consideration will be settled through offsetting prepaid payments. On November 25, 2025, Xinyuan Technology (a wholly-owned subsidiary of the company), Beijing Xinyuan Hongsheng (a wholly-owned subsidiary of the company), and another related company of Xinyuan Real Estate entered into Asset Offset Agreement No. 2 to transfer a group of properties to Xinyuan Technology and Beijing Xinyuan Hongsheng for a total consideration of RMB 41.07 million. The consideration will be settled through offsetting compensation payments. On November 25, 2025, Xinyuan Technology (a wholly-owned subsidiary of the company) entered into Asset Offset Agreement No. 3 with Zhengzhou Hang Mei, with Hang Mei agreeing to transfer a group of properties to Xinyuan Technology for a total consideration of RMB 3.7596 million. The consideration will be settled through offsetting unpaid accounts receivable owed by Hang Mei to Xinyuan Technology. On November 25, 2025, Xinyuan Technology (a wholly-owned subsidiary of the company) entered into a lease agreement with Tianjin Xinyuan, related to the lease of certain properties for a period of 20 years. The rent will be settled through offsetting the unpaid accounts receivable owed by Tianjin Xinyuan to Xinyuan Technology. Considering the liquidity issues faced by Xinyuan Real Estate Holdings, and the various lawsuits and arbitrations involving Xinyuan Property Group, the company believes that it is unlikely for Xinyuan Real Estate Holdings to repay all prepaid, compensation and unpaid accounts receivable to the group in cash in the short term. Any further lawsuits or arbitrations against Xinyuan Real Estate Holdings may result in legal costs for the company, without guaranteeing the recovery of such amounts.