JUJIANG CONS (01459) plans to sell 80% equity of Tongxiang City Youth Quality Education Practice Base for 66.3 million yuan.

Jujiang CONS (01459) announced that on June 30, 2026, the company (as the seller) intends to sell 80% of the equity of the target company (Tongxiang Youth Quality Education Practice Base Limited Liability Company) to the buyer (Tongxiang Education and Culture Development Investment Co., Ltd.) for a consideration of approximately RMB 66.3 million. After the completion of the transaction, the target company will no longer be a subsidiary of the company, and its financial performance will no longer be consolidated into the group's financial statements. The target company is the project company for the implementation of the Tongxiang Youth Quality Education Practice Base PPP project. This PPP project is a public-private partnership project involving investment, financing, construction, operation, and management of the youth quality education practice base located in Haihua Village, Tongxiang City, Zhejiang Province, China. The PPP project has been approved by the Tongxiang Municipal People's Government in accordance with the "Reply on Approving the Implementation Plan of Tongxiang Youth Quality Education Practice Base PPP Project" (Tongzheng Letter [2018] No. 35). The Tongxiang Education Bureau has been authorized by the Tongxiang Municipal People's Government to serve as the implementing agency for the PPP project, and the buyer is the government investment representative authorized by the Tongxiang Municipal People's Government for the PPP project. The group is mainly engaged in construction engineering contracting, as well as design, survey, and consulting services for construction engineering. The target company's PPP project is not part of the group's core business segment, and the group initially participated in the project in 2018 with the aim of diversifying its business and gaining experience in the PPP field. After considering (i) the historical financial performance of the target company; (ii) the long-term capital commitment and continuous operating cost requirements of the PPP project; (iii) the expected return of the PPP project estimated in the return analysis of the related termination arrangements; (iv) the share pledge of the bank as collateral for equity and the group's related repayment obligations; and (v) the terms of the sale being more favorable than the equity valuation, the board of directors believes that the sale provides the group with the opportunity to: (a) realize its investment in the target company at a price close to its valuation; (b) fully pay off debts secured by shares pledged, thereby releasing the property burden on the equity and improving the group's asset-liability ratio; (c) reinvest the funds in the group's core construction engineering contracting business and related services, including supplementing operating funds; and (d) reduce the operational and financing risks brought by long-term PPP arrangements beyond the group's main business scope.