Kangxin New Materials is transferring 60% equity of its subsidiary, after the transaction is completed, it will focus on its core business.

On April 25, 2025, Kangxin New Materials Co., Ltd. agreed that its wholly-owned subsidiary Hubei Kangxin would publicly list and transfer 60% equity of Tianxin Company through the Wuxi Property Rights Exchange Center, with an initial valuation of 62,575.6 million yuan, which was later adjusted to 62,701.4 million yuan. The listing was made on June 13, and by the end of the first listing period on July 24, no intended transferees were found. On July 30, the company lowered the transfer price to 60,592.5 million yuan. A second listing was made on August 1, and Hubei Ruicheng Culture and Tourism Co., Ltd. was identified as the transferee. Recently, the two parties signed a contract and the transferee has completed the payment. This transaction will help the company optimize resource allocation, focus on core businesses, and after completion, Tianxin Company will no longer be included in the consolidated financial statements. The price is fair and does not harm the interests of shareholders. The company will cooperate in handling property rights changes, and investors are reminded to be aware of the risks.