AGILE GROUP (03383) subsidiary intends to sell 50% equity interest in Zhejiang Xiangya Real Estate Development for about RMB 95 million.

AGILE GROUP (03383) announced that on April 22, 2026, the seller (the indirect non-wholly owned subsidiary of the Company, Nantong Yaxin Enterprise Management Consulting Co., Ltd.) intends to sell 50% equity of the project company (Zhejiang Xiangya Real Estate Development Co., Ltd.) to the buyer (China Real Estate Development Group Nantong Co., Ltd.) for a price of RMB 95 million. The price will be paid by the buyer through the transfer of debt to the seller. The transfer of debt will be settled by transferring the target property to the seller. After the sale is completed, the Company will no longer hold any equity in the project company, and the project company will no longer be a subsidiary of the Company. The target property is a portion of unsold properties held by the project company. The project company is a limited liability company established in China engaged in real estate development and operation. The project company is owned 50% by the buyer and 50% by the seller. The establishment of the project company is for the joint development of the Huzhou No. 1 Project in Huzhou City, Zhejiang Province, China. The total construction area of the project is approximately 130,500 square meters, with a sales area of approximately 151,427 square meters for residential and commercial purposes, including residential properties, commercial properties, parking spaces, storage rooms, and a gymnasium. As of the date of this announcement, the unsold properties under the project (including the target property) include 172 residential properties, 28 commercial properties, 423 parking spaces, 37 storage rooms, and 2 gymnasiums, with a total sales area of approximately 37,280 square meters, and a total record price of RMB 625.8 million, with a unit record price of RMB 16,786 per square meter. Due to changes in the Chinese real estate market, the sale is mainly due to differences between the buyer and the seller regarding the future development and operation strategies and operating methods of the project. The seller and the buyer could not reach a consensus on the timing and pricing strategy for the sale of the remaining properties. Considering that the project company has not generated profits for the Group, the directors believe that the sale is a practical arrangement for the Group, providing an opportunity to divest the project. After the sale is completed, the buyer will take on all responsibilities for the project's operation and development, while the Group will retain its economic interests in the form of debt, which is expected to be gradually realized later. The seller will have the flexibility to dispose of these assets (through sale or offsetting the seller's debt and other operating liabilities).