Zhengye International (03363) subsidiaries sold the Huigu Project and Zhigu Project with a total property price of 234.43 million yuan

Zhitong Finance App News, Zhengye International (03363) announced that since September 30, 2026 (after the transaction period), the seller Zhongshan Yongfa Intelligent Manufacturing Co., Ltd. (i) has signed a sales agreement I with buyer I Zhongshan Xinhui Packaging Materials Co., Ltd. Based on this, the seller has agreed to sell and Buyer I has agreed to buy the 1st floor of Plant No. 10 at a cost of about RMB 10.979 million; and (ii) signed a sales agreement II with buyer II Zhongshan Xinfulai Packaging Materials Co., Ltd., according to which the seller agreed Sold and buyer II has agreed to purchase the 2nd and 3rd floors of Plant 10 at a cost of approximately RMB 124.64 million.

Property I in the sales agreement is the 1st floor of the Huigu Project Plant No. 10, and the total construction area of the 1st floor of Plant No. 10 is 1,893 square meters. The property in the Sales Agreement II has a total construction area of 3,786 square meters on the 2nd and 3rd floors of Plant No. 10 of the Huigu Project and the 2nd and 3rd floors of Plant No. 10.

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. 10 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 Plant No. 9 (announced by the Company on the same day of this announcement), 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 may be sold in the future if suitable opportunities arise.

The Board believes that the sale provides the Group with an opportunity to achieve the intrinsic value of the converted 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.