China Tianying Inc. (000035.SZ) plans to sell the assets of the Mudanjiang project for 580 million yuan.

China Tianying Inc. (000035.SZ) announced that in order to meet the economic planning of local governments and the requirements for the management of public utility infrastructure, its wholly-owned subsidiary Mudanjiang Tianying Environmental Protection Energy Co., Ltd. (hereinafter referred to as "Mudanjiang Tianying") will sell the Mudanjiang Municipal Solid Waste Incineration Power Generation Project (hereinafter referred to as the "Mudanjiang Project") and related assets (including machinery and equipment, buildings, land use rights, inventory, and other operating assets) to the Mudanjiang Municipal Comprehensive Administrative Law Enforcement Agency (hereinafter referred to as the "Mudanjiang Municipal Comprehensive Management Bureau") at a total price of RMB 580 million including taxes. After the completion of this asset sale, Mudanjiang Tianying will no longer hold this franchise project. Considering that the original operating income and profit of the Mudanjiang Project accounted for a relatively low proportion of the company's overall business, it is estimated that this asset sale will not have a significant impact on the company's future continuous operating capability. Based on preliminary calculations, it is estimated that this transaction will reduce the company's consolidated net profit for the year 2025 by approximately RMB 47 million. The specific accounting treatment and impact amount will be subject to confirmation by the annual audit of the accounting firm.