Zhengye International (03363) subsidiary plans to sell plant No. 9 of the Huigu Project for 48.68 million yuan

Zhitong Finance App News, Zhengye International (03363) issued an announcement. On September 30, 2026 (after the trading period), the seller Zhongshan Yongfa Intelligent Manufacturing Co., Ltd. (an indirect wholly-owned subsidiary of the company) signed a sales agreement with the buyer Zhongshan Tongrui Packaging Materials Co., Ltd. Based on this, the seller has agreed to sell and the buyer has agreed to buy Plant No. 9 at a cost of RMB 48.68 million. Property: Plant No. 9 of the Huigu Project. The total construction area of Plant 9 is 12,170 square meters.

The Huigu Project and the Zhigu Project are located in the vicinity of a larger plot owned by the Group (where its existing production facilities are located). In line with the renovation plan and as part of the Group's strategy to optimize the use of land resources, the Group has transformed a number of underutilized areas and old buildings into modern industrial plants with higher specifications and more complete functions.

Plant No. 9 is located within the Huigu Project. The relevant land used to be used as a warehouse for auxiliary materials at Yongfa's production base. After these warehouses were relocated to other usable areas within Yongfa's production base, the relevant land was remodeled without affecting the Group's production and operation activities. Currently, the first and second phases of the Huigu Project have a total of eight completed plants. Taking into account the sale and the sale of the 1st to 3rd floors of Plant No. 10, the seller has sold about 66% of the total construction area of the Huigu Project. Since the Group must hold no less than 20% of the total completed construction area of the Huigu Project for at least 15 years in accordance with applicable renovation regulations, it can sell up to 80% of the total construction area of the Huigu Project. The remaining portion of 80% of the total completed construction area of the Huigu Project that can be sold is currently held by the Group and can be sold if suitable opportunities arise in the future.

The Board believes that the sale provides the Group with an opportunity to achieve the intrinsic value of the remodeled property assets and generate cash proceeds from holding non-core properties. Proceeds from the sale will strengthen the Group's financial position, enhance its liquidity, and provide additional resources for its general working capital and future business development.