East Group control shifts to state-owned assets

Guohai Securities has issued a financial advisor's verification opinion on the detailed report of equity changes for East Group. Hubei Jingjiang Industrial Investment Group (Jingjiang Industrial) will acquire 434,429,514 shares, representing 18.66% of East Group's total share capital, for CNY 2,437,149,573. This transfer will make Jingjiang Industrial the controlling shareholder, with Jingzhou City State-owned Assets Supervision and Administration Commission becoming the ultimate actual controller.

Prior to this transaction, Guangdong Hengrui Equity Investment Partnership held 17.93% of East Group’s shares, and Yangzhou Oriental Group Co., Ltd. held 31.73%. Post-transaction, Guangdong Hengrui will no longer hold shares, while Yangzhou Oriental Group will retain 31.01% of the shares. Yangzhou Oriental Group has also committed to irrevocably waive the voting rights for 721,966,914 shares (31.01% of total share capital) for five years from the transaction's completion, effectively transferring control.

The transaction is subject to approvals from state-owned asset regulatory authorities and a concentration of undertakings review by the State Administration for Market Regulation. East Group's board and shareholders will also be adjusted according to the equity transfer agreement, ensuring the company's operational independence. East Group assures that the transaction will not adversely affect its normal operations or the interests of small and medium shareholders.