Guangdong Investment Unit to Divest 35% Stake in Guangdong AEON for 152 Million Yuan

Guangdong Investment (HKEX: 00270) has announced that on June 12, 2026, its indirectly held, non-wholly owned subsidiary, Guangdong Yuehai Tianhe City Department Store Development Co., Ltd., entered into a share transfer agreement with the buyer, AEON Stores (HKEX: 00984) (Hong Kong) Co., Ltd. Under the agreement, the seller will dispose of its 35% equity interest in Guangdong AEON, with the buyer acquiring the stake for a consideration of 152 million yuan. Upon completion of the sale, the seller will no longer hold any equity in Guangdong AEON.

As of the date of this announcement, Guangdong AEON is 65% owned by AEON Stores and 35% owned by the seller. Guangdong AEON is currently accounted for as an associate of the company.

In recent years, the frequency and amount of cash dividends distributed by Guangdong AEON have shown a declining trend. After assessing the overall development trend of Guangdong AEON in recent years and considering the strategic development plan of the group, the board of directors believes that the disposal is conducive to focusing on the group's core business (particularly the operation of the water resources business), optimizing the group's asset structure, and is therefore expected to benefit the overall development of the group.

As Guangdong Holdings (the company's ultimate controlling shareholder) is a state-owned enterprise, the disposal constitutes a disposal of state-owned assets. It must be conducted through a public bidding process at an approved equity exchange center in accordance with relevant Chinese laws and regulations governing the disposal of state-owned assets. As of the date of this announcement, the public bidding process has been completed. AEON Stores was the successful bidder (i.e., the ultimate buyer of the equity interest) and was the sole bidder in the public tender.

In light of the above and considering that a public bidding process was used to determine the final consideration, the directors (including the independent non-executive directors) consider that the disposal is fair and reasonable, entered into in the ordinary and usual course of the group's business on normal commercial terms or terms more favorable to the group, and is in the overall interests of the company and its shareholders.