Zhuhai Zhunian Group faces SSE inquiry over major asset sale

Zhuhai Zhunian Group Co., Ltd. (the Company) announced on November 21, 2025, that it received an inquiry letter from the Shanghai Stock Exchange (SSE) on November 20, 2025. The inquiry concerns its draft plan for a major asset sale and connected transaction. The Company intends to sell 100% equity in its subsidiary, Zhuhai Gree Real Estate Co., Ltd., to affiliated party Zhuhai Toujie Holdings Co., Ltd., for a transaction price of 551,753.65 million yuan. This transaction constitutes a major asset restructuring.

The SSE's inquiry letter requests further explanation and clarification on several key aspects. These include the transaction arrangements, particularly the early asset delivery despite only 30% of the payment (165,526.10 million yuan) being made upfront and the two-year payment schedule. The SSE also raised questions regarding potential legal risks, the Company's loss of control over the asset, and the buyer's ability to fulfill its payment obligations.

Furthermore, the SSE is seeking detailed disclosures on existing guarantee matters, including associated risks and anti-guarantee measures provided by Toujie Holdings. The inquiry also covers the valuation of the assets, specifically inventory and long-term equity investment impairments, and the impact of existing mortgages and title defects on the transaction's payment schedule. The Company must respond within 10 trading days.