HONGHUA GROUP plans to sell approximately 6.9152% of its equity in Chengdu Jinkong Financing Leasing Co., Ltd. for 85.764 million yuan

According to the news from Zhitong Finance APP, HONGHUA GROUP (00196) announced that on October 16, 2025, its subsidiary HONGHUA Holdings entered into a HONGHUA Holdings Agreement with Chengdu Jiaozi, while another subsidiary, Sichuan HONGHUA, also entered into a Sichuan HONGHUA Agreement with Chengdu Jiaozi on the same day. According to these agreements, HONGHUA Holdings and Sichuan HONGHUA respectively agreed to sell a total of approximately 6.9152% equity in Chengdu Jinkong Financing Leasing Co., Ltd. to Chengdu Jiaozi, for a total consideration of approximately RMB 85.764 million.

As of the date of this announcement, the group holds approximately 6.9152% equity in the target company. Upon completion of the sale, the group will no longer hold any equity in the target company.

According to the group's strategic development plan, the group will continue to promote the optimization of its asset structure, focus on its main business, divest non-core and non-advantageous enterprises, and further enhance resource allocation efficiency. The sale will help the company implement the management requirements of the State-owned Assets Supervision and Administration Commission regarding central enterprises holding equity in financial enterprises, promote the orderly exit of non-core assets, reduce risks associated with non-core financial businesses, and further optimize the group's equity structure and capital allocation. By transferring the relevant equity through public listing, the group can realize asset monetization, increase liquidity, improve the asset-liability structure, and reduce financial costs, thereby supporting the group in focusing on its main responsibilities, advancing transformation and upgrading, and achieving high-quality development. The board of directors believes that the sale is in the overall interest of the company and all shareholders