Gelonghui, May 22丨Liaogang Co., Ltd. (601880.SH) announced that Liangchang Company, in which the Company is a shareholder, is currently facing serious operating difficulties due to heavy financial burdens. At the same time, there are also historical debt problems between the local government management committee and the Dalian Port Group. As a result, the shares of Liangchang Company held by the Management Committee and Changxing Island Construction Investment have been pledged to Dalian Port Group. In order to resolve problems left over from history and business difficulties and avoid extreme unfavorable situations, the Dalian Port Group plans to acquire 50% of the shares of Changxing Investment Development Company held by the Management Committee and 20% of Changxing Island Construction Investment's shares in Changxing Island Construction Investment to achieve “equity and debt compensation” between the Dalian Port Group and the Management Committee. After the equity acquisition was completed, on the one hand, it solved the problems left over from the historical arrears of the Management Committee. On the other hand, after the acquisition of shares by the Dalian Port Group, it is proposed to work with a syndicate to optimize the financial structure of Liangchang Company, resolve business difficulties, and promote the healthy operation and development of Liangchang Company. Dalian Port Group and Changxing Island Construction Investment Consulting Company inquire whether to exercise preferential purchasing rights over the aforementioned shares. According to actual business conditions and financial arrangements, the company intends to relinquish the exercise of preferential purchase rights of shares traded between the two major companies.

The Dalian Port Group plans to acquire 50% of the shares of Changxing Investment Company held by the Management Committee and 20% of Changxing Island Construction Investment's shares in Changxing Island Construction Investment Company using the final assessed value agreement filed by the state-owned assets supervision and administration department. The initial negotiation consideration was 407.3448 million yuan and 61.651 million yuan, respectively (the final transaction consideration is subject to the written transaction documents signed by the two parties). The evaluation method for the underlying assets of this transaction is the Asset Foundation Method. The reference date is March 31, 2024. The important evaluation assumptions and evaluation parameters are reasonable.

The company's relinquishment of priority purchasing rights is a prudent decision made by comprehensively considering its actual business situation and overall development plan, and is in line with the company's long-term development needs. The abandonment of priority purchasing rights has not changed the company's shareholding ratio in Changfa Company and Changgang Company. Changjiang Investment Development Company and Changgang Company are still participating companies in the company.