Red Star Development: Holding subsidiary transferring production capacity and ceasing production, expected impairment of 30 million yuan.

Red Star Development announcement stated that its controlling subsidiary Dazu Hongdie needs to relocate to the chemical industrial park due to the aging of existing equipment and high operating costs. The company plans to suspend its production. Dazu Hongdie achieved a revenue of 265.46 million yuan in 2024 and 260.42 million yuan from January to September 2025. After the suspension, some production equipment will be transferred to Rui Desida, and its follow-up business will be taken over by them. Dazu Hongdie has sorted out orders to ensure a smooth transition and will properly resettle its employees. It is expected that there will be an impairment of 30 million yuan in some assets of Dazu Hongdie, which will have a negative impact of 19.8 million yuan on the consolidated net profit attributable to the parent company in 2025.