XJ International Holdings to sell education assets for RMB650m

XJ International Holdings Co., Ltd. (the "Company") announced a major transaction involving the disposal of its entire equity interest in Shanghai Pumeng Zhichuan Education Technology Co., Ltd. (the "Target Company") and its subsidiaries, including Suzhou Top Institute and Kunshan Technical School. The consideration for the disposal is RMB650 million, determined after arm's length negotiations, which reflects a premium of approximately 37.71% over the business valuation result of RMB472 million as of July 31, 2025.

The Company expects to record an unaudited gain of approximately RMB130.3 million from the disposal. The net proceeds are intended to be used for current debt repayment obligations and the Group's general working capital. The transaction is subject to shareholder approval at an Extraordinary General Meeting (EGM) scheduled for November 14, 2025.

As of the closing date, the Target Subjects held approximately RMB162 million in cash and receivables, exceeding the agreed working capital amount of RMB155 million. The surplus of RMB7 million will be used to pay off Shareholders' Debt, which was approximately RMB3.4 million. The Purchaser, Guilin Punuojie Electronic Co., Ltd., and its guarantor, URIT Medical Electronic Co., Ltd., are independent third parties.