JU TENG INTL: Da Chang (Suzhou) signed a new return agreement for Da Chang II with the local government

According to the announcement from JU TENG INTL (03336), on May 12, 2025, for the reasons and benefits disclosed in this announcement regarding the "termination of the Dazhang II return agreement and the establishment of a new Dazhang II return agreement," Dazhang (Suzhou) and Huaying (Wujiang) entered into a termination agreement. The parties to the contract irrevocably and unconditionally agreed to terminate the Dazhang II return agreement, effective from the date of the termination agreement, to release each other from their obligations under the Dazhang II return agreement, and waive their respective rights to claim or seek other remedies from each other regarding matters arising from or related to the Dazhang II return agreement; and the Dazhang II return agreement will no longer be effective and in force, even if it contains any contrary provisions.

On May 12, 2025, Dazhang (Suzhou) entered into a new Dazhang II return agreement with the local government, whereby the local government agreed to reclaim and Dazhang (Suzhou) agreed to return the Dazhang II land parcel and property, at a cost of approximately RMB 356.3 million, to be paid by the local government.

According to recent discussions with the local government and Huaying (Wujiang), due to subsequent changes in urban planning and management policies by the local government, the Dazhang II land parcel and property will be used for environmental and ecological facility projects (new use), which, according to applicable local laws and regulations, cannot be undertaken by "commercial entities" and must be undertaken by government agencies. The company has learned that Huaying (Wujiang) is a private company, constituting a "commercial entity," and therefore is not qualified to continue returning the Dazhang II land parcel and property for the new use. Consequently, the return of the Dazhang II land parcel and property under the Dazhang II return agreement cannot proceed. On the other hand, the local government, as a government agency, will be qualified to handle the relevant return matters. Therefore, it is necessary to terminate the Dazhang II return agreement and replace it with a new Dazhang II return agreement to facilitate the local government in returning the Dazhang II land parcel and property