CIFI Holdings (Group) Co. Ltd. (00884) Updates on Disposal of Tianjin Hexin and Acquisition of Ningbo Haishu Xingli

CIFI Holdings (Group) Co. Ltd. (00884) released supplemental information regarding its earlier announcement dated 28 December 2025, detailing two key transactions: the disposal of equity interest in Tianjin Hexin and the acquisition of equity interest in Ningbo Haishu Xingli.

In the disposal of Tianjin Hexin, the company disclosed that the book value of Tianjin Hexin’s assets and net asset value, recorded without consolidating the underlying project company, stood at RMB897,955,000 and RMB344,964,000 respectively as of 30 September 2025. The unaudited consolidated total asset value and net asset value on a 100% basis, which include all subsidiaries, totaled approximately RMB1,685,021,000 and RMB884,808,000. An impairment of RMB44,700,000 was appraised on Tianjin Hexin’s long-term investment. In calculating the expected loss of RMB11,321,000 on the disposal, the carrying amount of Tianjin Hexin (RMB344,964,000) was reduced by accumulated losses of RMB31,683,000, resulting in a book value of RMB313,281,000 for the company’s attributable interest, compared to the disposal consideration of RMB301,959,800.

For the acquisition of Ningbo Haishu Xingli, the announcement explained that the different asset values arise from the joint-venture nature of the investment and the statutory financial statements used. Ningbo Haishu Xingli’s book asset value totaled RMB1,184,932,000, with a net asset book value of RMB989,602,000 as of 30 September 2025, while the unaudited consolidated figures adopted by the Group in its equity accounting showed total and net asset values of RMB811,927,000 and RMB603,920,000 respectively after an impairment of approximately RMB385,700,000. The independent valuer appraised an investment impairment of RMB365,984,000, reducing the appraised net asset value to RMB623,618,000. The acquisition consideration of RMB301,959,000 for 50% shareholding was determined primarily by reference to this appraised figure, amounting to about half of the appraised net asset value.

According to the announcement, the board of CIFI Holdings (Group) Co. Ltd. approved these transactions on 21 January 2026.