Huafa Group: Plans to transfer 60% of Zhuhai Huatong's equity for 697 million yuan.

HuaFa Announcement: The company's wholly-owned subsidiary, Zhuhai Huaxin, plans to transfer 60% of its equity in Zhuhai Huatong through public listing, with a base price of 697 million yuan. The final price and trading counterpart of this transfer shall be subject to the public listing results. In order to comply with the control requirements of the cooperating party, the company plans to sign a supplementary agreement before the listing, adjusting the rules of the transaction. After the agreement is signed, Zhuhai Huatong will no longer be included in the company's consolidated financial statements. This transaction has been approved by the board of directors and does not require shareholder approval, but still needs to go through the public listing process.