Guangdong Investment's Subsidiary to Sell 35% Stake in Guangdong AEON for 152 Million Yuan

Guangdong Investment Ltd (HKEX: 00270) announced that on June 12, 2026, the seller, Guangdong Yuehai Tianhe City Department Store Development Company Limited (a non-wholly-owned indirect subsidiary of the company), entered into an equity transfer agreement with the buyer, AEON Stores (Hong Kong) Co., Limited. According to the agreement, the seller will sell its 35% equity interest in Guangdong AEON Co., Ltd., and the buyer will acquire this stake for a consideration of 152 million yuan.

Upon completion of the disposal, the seller will no longer hold any equity interest 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.

The frequency and amount of cash dividends distributed by Guangdong AEON have shown a declining trend in recent years. After evaluating Guangdong AEON's overall development trajectory in recent years and considering the group's strategic development plan, the board of directors believes that the disposal is beneficial for focusing the group's core business, particularly the operation of its water resources segment. It is also expected to optimize the group's asset structure, which is anticipated to be favorable for the group's overall development.

As Yuehai 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 on 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, becoming the ultimate buyer of the equity stake. It was the sole bidder in the public tender process.

In light of the above circumstances and considering that a public bidding process was used to determine the final consideration, the directors, including the independent non-executive directors, consider the disposal to be fair and reasonable. They believe it is 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.