I. Overview of the Transaction
On November 11, 2025, the 42nd meeting of the 10th Board of Directors of China Merchants Jiyu Industrial Operation Service Co., Ltd. (hereinafter referred to as "the Company") approved the proposal to publicly transfer 60% equity in its controlling subsidiary, Hengyang Zhonghang Real Estate Co., Ltd. (hereinafter referred to as "Hengyang Zhonghang"). The buyer is also required to assume the obligation to settle Hengyang Zhonghang's debts in a manner compliant with regulatory requirements. The Company set the listing price at RMB 1,675,649.92 based on the equity valuation results provided by the appraisal agency (subject to the results filed with the relevant state-owned assets management authority). If the assessed value of the 60% equity in Hengyang Zhonghang exceeds RMB 1,675,649.92, the listing price will be adjusted to that assessed value. For further details, please refer to the announcement disclosed by the Company on November 12, 2025, on the Giant Tide Information Network and in the Securities Times, China Securities Journal, Shanghai Securities Journal, and Securities Daily (Announcement No.: 2025-65).
II. Progress of the Transaction
On November 13, 2025, the Company publicly listed the 60% equity of Hengyang Zhonghang for sale at the Beijing Property Exchange (hereinafter referred to as "the Exchange"), with a listing price of RMB 1,675,649.92. According to feedback from the Exchange, one qualified potential buyer, Hengyang Gaoxin Investment Co., Ltd. (hereinafter referred to as "Gaoxin Investment"), submitted a bid of RMB 1,675,649.92. After review by the Exchange and confirmation by the Company, Gaoxin Investment met the conditions for the transfer. On December 25, 2025, the Company signed the Property Transaction Contract with Gaoxin Investment.