Yuexiu Real Estate (00123) subsidiary plans to sell a total of 73.74% of Hangzhou Yuexiu Real Estate's real interests

According to Zhitong Finance App News, Yuexiu Real Estate (00123) announced that on January 5, 2026, the seller (an indirect non-wholly-owned subsidiary of the company) had signed a cooperation agreement with the buyer (Hangzhou Binjiang, Kunhe Construction and Zhejiang Yingguan) and the project company Hangzhou Yueyun Real Estate Development Co., Ltd. The seller agreed to sell and the buyer agreed to purchase a total of 73.74% of the actual interests of the project company, but this can only be realized after the preconditions are reached. After completion, the seller, Hangzhou Binjiang, Kunhe Construction, and Zhejiang Yingguan will actually own 26.26%, 25.74%, 24.00% and 24.00% of the shares in the project company, while the shareholder loan ratios provided by the seller, Hangzhou Binjiang, Kunhe Construction, and Zhejiang Yingguan to the project company will be 26.26%, 25.74%, 24.00% and 24.00%, respectively.

The total costs payable by the buyer include equity transfer costs of RMB 516 million; interest expected to be approximately RMB 4.4522 million; and shareholder loans with an expected amount of RMB 501 million. This amount is determined based on the total land concession fund and 73.74% of the project company's capital (that is, the buyer's actual interest in the project company upon completion) and interest payable to the seller.

The plot is located in Gongshu District, Hangzhou. The surrounding commercial, educational and transportation facilities are perfect, and it has excellent geographical advantages. The buyer is a leading real estate company in Hangzhou, China, which has a reputation for its high quality and good customer reputation. The director believes that cooperation with the buyer will improve the development efficiency and resource allocation of the plot.

In view of the above, the directors believe that the interest in selling the land through the sale is in the interests of the Group. Upon completion, the seller will hold 50.50% of Joint Venture A's shares, while Joint Venture A will hold 52.00% of the project company's shares. Therefore, the financial results of the project company will be consolidated into the company's consolidated financial results, and it is expected to contribute to the overall operating scale and financial performance of the Group. After considering the above reasons and benefits, the directors (including independent non-executive directors) believe that the terms of the cooperation agreement and the transactions to be carried out under it are fair and reasonable, made in accordance with general commercial terms and carried out in the general and daily business processes of the Group, and conform to the overall interests of the Company and shareholders.