ZHENGYE INT'L plans to sell its Zhongshan property

According to the announcement from ZHENGYE INT'L (03363), on September 12, 2025, the seller Zhongshan Yongfa Intelligent Manufacturing (an indirect wholly-owned subsidiary of the company) and the buyer Zhongshan Wanshunda Electric signed a sales agreement, where the seller agreed to sell and the buyer agreed to purchase the property for a price of RMB 16.8889 million.

It is reported that the property is located at No. 6 Factory of the Zhongshan Songwan Huigu Intelligent Manufacturing Project in the Xintang Community of Huangpu Town, Zhongshan City, China. The total land use right area is 36,413 square meters, while the building area of the property is 3,964.65 square meters.

The land where the property is located is used by the Group for paper raw material storage. To increase the utilization rate of this land, the Group responded to the Zhongshan government’s call for the "Three Olds" renovation and applied for the reconstruction of this land, which was approved in November 2022 (the project). The first phase of the project commenced in October 2023 and will construct six industrial buildings with a total building area of approximately 26,693.03 square meters. As of the date of this announcement, the first phase of the project has been completed. The property to be sold in this transaction (i.e., No. 6 Factory) is one of the completed buildings in the first phase of the project. The Board believes that the sale represents a good opportunity for the Group to realize the value of the property at a reasonable price, and the proceeds from the sale can be used for the development and construction of the project or to supplement the Group's working capital