YUEXIU PROPERTY (00123) plans to sell 73.74% of the actual equity of Hangzhou Yueyunhe.

Yuexiu Property (00123) announced that on January 5, 2026, the seller (an indirect non-wholly owned subsidiary of the company) has entered into a cooperation agreement with the buyer (Hangzhou Binjiang, Kunhe Construction, and Zhejiang Yinguang) and the project company Hangzhou Yueyun Real Estate Development Co., Ltd. The seller agrees to sell and the buyer agrees to purchase a total of 73.74% of the actual equity of the project company, subject to the fulfillment of certain conditions precedent. After completion, the equity of the project company will be owned by the seller, Hangzhou Binjiang, Kunhe Construction, and Zhejiang Yinguang with actual ownership of 26.26%, 25.74%, 24.00%, and 24.00% respectively, and the shareholder loans provided by the seller, Hangzhou Binjiang, Kunhe Construction, and Zhejiang Yinguang to the project company will be in proportions of 26.26%, 25.74%, 24.00%, and 24.00% respectively. The total consideration to be paid by the buyer includes a transfer price of RMB 516 million; estimated interest of approximately RMB 4.4522 million; and shareholder loans of approximately RMB 5.01 billion. This amount is determined based on 73.74% of the total land premium and project company funds (i.e. the actual equity that the buyer will hold in the project company upon completion) and the interest payable to the seller. The plot is located in Gongshu District, Hangzhou City, with well-developed surrounding commercial, educational, and transportation facilities, enjoying a superior geographical advantage. The buyer is a leading real estate company in Hangzhou, China, known for its high quality and good customer reputation. The directors believe that the cooperation with the buyer will enhance the development efficiency and resource allocation of the plot. In view of the above, the directors believe that the sale of the equity of the plot through the sale transaction is in the interests of the group. After completion, the seller will hold 50.50% equity of Joint Venture A, which will hold 52.00% equity of the project company. Therefore, the financial performance of the project company will be consolidated into the comprehensive financial performance of the company, contributing to the overall operation and financial performance of the group. Considering the above reasons and benefits, the directors (including independent non-executive directors) believe that the terms of the cooperation agreement and the transactions contemplated thereunder are fair and reasonable, entered into on general commercial terms and in the normal course of the group's business, and are in the overall interests of the company and its shareholders.