EV DYNAMICS (00476) subsidiary intends to sell properties for 20 million yuan.

EV DYNAMICS (00476) announced that on September 4, 2026, the seller, Chongqing Suitong New Energy Vehicle Manufacturing Co., Ltd. (a subsidiary of the Group), and the buyer, Chongqing Gangyang Machinery Manufacturing Co., Ltd., entered into a sales agreement, under which the seller conditionally agreed to sell, and the buyer conditionally agreed to acquire the property, for a price of 20 million RMB (approximately 23.3 million HKD). The property is located at No. 70, East Road, Baima Town Industrial Park, Wulong District, Chongqing, and includes two plots of land with a total area of approximately 68,700 square meters and four buildings constructed on it with a total building area of about 25,500 square meters. The directors intend to use the estimated net proceeds from the sale, which is approximately 16.5 million RMB (after deducting estimated expenses of about 3.5 million RMB related to land value increment tax and other taxes or expenses), to settle the outstanding amount under the Chongqing arbitration judgment. In recent years, due to a decrease in both domestic and overseas orders, the Group's electric vehicle sector has slowed down. To improve operational cost efficiency, the Group has increasingly hired external contract manufacturers for production, leading to a decline in the utilization of the property. Maintaining the factory under the current circumstances would not only incur annual property and land taxes (approximately 589,000 RMB per year) but also result in ongoing administrative and regular operating expenses. Although the sale is expected to record an accounting loss, the board believes that, given the poor liquidity and weak demand in the industrial property market in the region, the sale represents a timely and good opportunity for the Group to realize the value of its assets. In addition to eliminating ongoing maintenance and administrative expenses, the sale generates immediate cash inflow to alleviate the Group's financial burden, mitigate potential legal enforcement risks, reduce the Group's overall debt-to-asset ratio, and strengthen its overall liquidity and financial position.