Zhanjiang Guolian Aquatic sells subsidiary to controlling shareholder

Zhanjiang Guolian Aquatic Products Development Co., Ltd. announced the sale of 100% equity in its wholly-owned subsidiary, Guangdong Xinying Food Technology Co., Ltd. to its controlling shareholder, Xinyu Guotong Investment Management Co., Ltd. The transaction, approved by the board of directors and pending shareholder approval, is structured as a debt-assumed acquisition. Xinyu Guotong will pay 34.7465 million yuan for the equity and assume Guangdong Xinying's debt of 280.6861 million yuan to Zhanjiang Guolian, totaling 315.4326 million yuan.

The sale, based on an asset valuation report and an audit report, aims to revitalize the company's assets and optimize its capital structure. The move is expected to improve inventory turnover and allow Zhanjiang Guolian to focus on its core business. This related-party transaction will result in Guangdong Xinying being excluded from Zhanjiang Guolian's consolidated financial statements.

An extraordinary general meeting is scheduled for December 24, 2025, to approve the equity transfer. The audit report for Guangdong Xinying Food Technology Co., Ltd. for the period ending October 31, 2025, shows total assets of 321.10391041 million yuan and total liabilities of 289.47944872 million yuan.