JIU RONG HOLD's subsidiary plans to sell 11 new energy public transportation charging stations in Hangzhou, China for 185 million yuan

According to the announcement from JIU RONG HOLD (02358), on October 21, 2025 (after the trading session), the seller JIU RONG New Energy Technology Co., Ltd. (an indirect wholly-owned subsidiary of the company) and the buyer Hangzhou West Lake New Energy Technology Co., Ltd. entered into the agreement regarding the sale. Under the agreement, the seller conditionally agrees to sell, while the buyer conditionally agrees to acquire the charging stations, with a consideration of approximately RMB 185 million, referencing an initial valuation of approximately RMB 186 million prepared by an independent third-party appraiser as of June 30, 2025 (valuation benchmark date), with the valuation report to be included in the circular. Upon completion of the sale, the company will no longer hold any rights or obligations related to the charging station assets.

After the completion of the sale, since the group will continue to provide operational and management services to the charging stations, on October 21, 2025 (after the trading session), the seller and the buyer will enter into a joint operation agreement, under which the operator will provide operational and management services for a period of three years for the charging stations in exchange for electricity service fees (as defined in this article).

The charging stations consist of 11 new energy public transportation charging stations located in Hangzhou, China. As of June 30, 2025, the book value of the charging stations is approximately RMB 185 million.

The company believes that the transactions proposed under the agreement and the joint operation agreement will allow the group to retain operational rights and generate stable income, enhancing profitability while transferring part of the fixed operational costs to the buyer, such as financial costs (in the form of monthly investment returns), depreciation expenses, and administrative management fees (in the form of monthly asset fees), and the buyer will bear any further capital expenditures required for upgrading the charging stations (if any). If the joint operation agreement is subsequently terminated or expires, the group will no longer be required to pay monthly investment return income and monthly asset fees. The company believes that the sale represents a good opportunity for the group to lock in the value of the charging stations, and the sale will enable the group to monetize its investment in the charging stations to repay part of the external outstanding debts that will mature in the next 12 to 18 months