Excellence Property to acquire PRC real estate assets in debt settlement

Excellence Property will acquire a portfolio of real estate assets from Excellence Real Estate, a connected person, for a total consideration not exceeding RMB362,825,942. This transaction aims to offset outstanding trade and other receivables due from the Excellence Group as of July 31, 2025. The assets, valued at RMB379,160,000 by an independent valuer, include office, residential, retail units, and car parking spaces in core urban areas across various PRC cities.

The acquisition is structured as a transfer of ownership title for some assets and a transfer of right-of-use or lease agreement for others, particularly where direct property title registration is currently not feasible under PRC laws. The transaction requires independent shareholders' approval at an extraordinary general meeting on December 31, 2025.

The board and the independent financial adviser view the settlement as fair and reasonable, providing the group with high-quality, value-accretive assets and mitigating credit risk exposure from the Excellence Group, which has faced liquidity challenges in the real estate sector.