CDAYENONFER (00661) Supplementary intends to sell 100% equity of Daye nonferrous metal Institute of Design and Research for approximately RMB 27.39 million.

CDAYENONFER (00661) announced that on June 18, 2026, the seller, Daye Nonferrous Metals Limited Liability Company (a direct non-wholly-owned subsidiary of the Company), entered into an agreement with China Metallurgical Construction Group Limited (China Fifteen Metallurgy). According to the agreement, the seller agreed to sell and China Fifteen Metallurgy agreed to purchase the equity interest, namely 100% of the shares of the target company Daye Nonferrous Design and Research Institute Co., Ltd. After completion, the target company will no longer be a subsidiary of the Company. It is estimated that the Group will realize a gain of approximately RMB 27.3986 million (approximately equivalent to HK$ 31.5083 million) from the sale. The estimated gain is calculated based on the difference between the consideration and the audited net asset value of the target company as at December 31, 2025, which is approximately RMB 122 million (approximately equivalent to HK$ 140 million). The sale is in response to and in line with the strategic initiatives issued by the State-owned Assets Supervision and Administration Commission of the State Council of China, aiming to encourage central enterprises to promote specialization integration, optimize industrial layout, and improve the quality and efficiency of state-owned capital allocation. According to the relevant measures, central enterprise groups are encouraged to streamline business structures, reduce duplicate auxiliary functions, optimize resource allocation, in order to enhance overall competitiveness and operational efficiency. The Board of Directors believes that the sale is a specific measure taken by the Group to divest non-core and ancillary businesses that are not directly related to the Group's main business focus, in compliance with the requirements of relevant national policies. The target company mainly provides design consulting, inspection and testing, geological exploration survey, information and smart services in China. The target company is mainly engaged in on-site survey and design project construction operations, but does not participate in the operation of such projects. Most of the target company's revenue and profits (consolidated by the Group) come from internal group projects, with recent profit growth largely attributed to several temporary and non-recurring projects. Considering the business characteristics of the target company and its limited contribution to the Group's core mining and metallurgy industry chain, the Board of Directors believes that retaining such ancillary functions within the Group is no longer in line with the optimal layout in the current policy context emphasizing specialization and industry integration within the Group.