Sinotrans Limited (00598) subsidiary intends to establish a joint venture with South Mountain in Hungary to acquire a warehouse in Hungary.

Sinotrans Limited (00598) announced that on January 29, 2026, its subsidiary Sinotrans Hong Kong and Nanshan Hungary have signed a joint venture agreement to establish a joint venture company in Hungary with the main purpose of acquiring a warehouse in Hungary. According to the joint venture agreement, the registered capital of the joint venture company is 10,000 Euros (equivalent to RMB 83,349), with Sinotrans Hong Kong and Nanshan Hungary contributing 4,000 Euros (equivalent to RMB 33,339.60) and 6,000 Euros (equivalent to RMB 50,009.40) respectively, holding 40% and 60% equity in the joint venture company. The joint venture company will not become a subsidiary of the company, and its financial performance will not be consolidated into the company's accounts. According to the planned investment of the joint venture company, the parties to the agreement will commit to contribute a maximum capital of approximately 49.8321 million Euros (equivalent to approximately RMB 415 million), with each party contributing proportionally. Sinotrans Hong Kong plans to contribute with its own funds not exceeding approximately 19.9329 million Euros (equivalent to approximately RMB 166 million). The main purpose of establishing the joint venture company is to acquire a warehouse in Hungary located in the northeast of Budapest, with a total rentable area of approximately 46,125 square meters, including a storage area of approximately 43,483 square meters and an office area of approximately 2,642 square meters. As of the date of this announcement, the occupancy rate of the Hungarian warehouse is 100%, with tenants including internationally renowned automobile factories, component manufacturers, logistics service providers, as well as Hungarian electronic distributors. The announcement stated that the signing of the joint venture agreement is in line with the company's overseas investment layout. Hungary, as a member of the European Union, is one of the most important bridges for trade between China and Europe. By strategically positioning core logistics resources in Hungary, the Group can further strengthen its layout of key resources in Europe, providing support for the establishment of an overseas "channel + hub + network" resource security system, and facilitating the Group's expansion of overseas customers. In addition, Nanshan Group's business covers various areas including comprehensive logistics, urban development, asset management finance, new energy, manufacturing, among others, and is actively promoting international development, accelerating the layout of overseas warehouses. Currently, the group manages overseas warehouse assets with a rentable area of nearly 1 million square meters in Hungary, Slovakia, Poland, Germany, and the Czech Republic, possessing a localized operation and management team as well as strategic investment experience. This transaction will fully leverage the respective strengths of both parties, with global logistics business driving logistics asset layout, and logistics asset management empowering logistics business operations, further enhancing the Group's comprehensive logistics solution capabilities and core competitiveness.