YIDA CHINA (03639) Plans to Transfer Property to Dalian Hengye to Offset Portion of Outstanding Amounts

According to a Smart Finance APP announcement, YIDA CHINA (03639) disclosed that regarding the Dalian court judgment requiring the outsourcing company to repay approximately RMB 296.6 million in outstanding amounts to Dalian Finance Bureau, on October 13, 2025, the company's wholly-owned subsidiary Dalian Changde and the company's wholly-owned subsidiary outsourcing company entered into an offset agreement with Dalian Hengye, which is wholly owned by Dalian Finance Bureau.

Under the agreement, Dalian Changde conditionally agrees to transfer all interests in the property to Dalian Hengye, while Dalian Hengye conditionally agrees to offset a total of RMB 275.78 million in partial outstanding amounts as consideration for the property transfer.

The property is located in Dadong Gou Village, Xinzhaizi Street, Ganjingzi District, Dalian City. The land is designated for software outsourcing and research & development purposes, covering approximately 36,950.8 square meters with a planned construction area of approximately 74,500 square meters. Among these, five above-ground individual buildings have a total construction area of approximately 49,300 square meters, along with underground parking garage (including civil defense facilities and equipment rooms) covering approximately 25,200 square meters, all currently under construction. The construction and development of the property are currently suspended.

The property (i.e., suspended development assets) was selected for this transaction as it represents the company's most favorable option and is the only unmortgaged asset located in Ganjingzi District, Dalian City. Affected by the pandemic and funding pressure, the property's construction and development have been suspended since 2021, during which the company halted investment while continuously monitoring market demand for industrial leasing.

The company has considered multiple options to settle the outstanding amounts, including but not limited to cash settlement and external financing. However, due to insufficient cash flow, the company cannot repay the outstanding amounts. Furthermore, under China's financing framework, there are no specific loan categories for compensation or refunds, which hinders the company's ability to obtain bank financing to settle the outstanding amounts.