MIN XIN HOLD (00222) intends to list and sell its entire equity interest in Sanming Sanyuan District Minxin Microfinance, with an initial bid price of approximately RMB 27.47 million.

MIN XIN HOLD (00222) announces that the Company intends to sell all the issued share capital of the target company, Sanming Sanyuan District Minxin Microfinance Co., Ltd., held by the Company. According to the relevant Chinese laws and regulations on the transfer of state-owned assets, the transfer of state-owned assets must be conducted through an open listing procedure at an approved property rights exchange. As the sale interest is regarded as state-owned assets, the potential disposal will be conducted through the Fujian Property Rights Exchange, with an initial bid price for the sale interest of approximately RMB 27.47 million. Upon completion of the potential disposal, the Company will no longer hold the sale interest, the target company will no longer be a subsidiary of the Group, and its financial results will no longer be consolidated into the Company's financial results. The target company previously provided microfinance services to small and medium-sized enterprises and individuals in Sanming City, Fujian Province. As at the date of this announcement, the target company continues to actively take all measures to recover impaired loans from its customers. Due to the severe operating environment, deterioration in the credit quality of the loan portfolio, and the continued impact of widespread defaults on principal and interest payments, the Company terminated the target company's microfinance business in 2016. The management of the target company has actively taken all measures to recover impaired loans from customers and has recovered no less than RMB 98.33 million over the past years. In 2021, the target company engaged the Fujian Property Rights Exchange to list and transfer its impaired loan portfolio, but no potential buyers were solicited. Recovery of impaired loans has become increasingly difficult, and the cost of enforcing collateral for impaired loans is high. The Company considers that now is an appropriate time to dispose of its ineffective projects so as to focus on exploring new investment opportunities.