According to the Zhitong Finance App, Century Jinhua (00162) issued an announcement on matters relating to the conclusion of an agreement to acquire a development project in Xi'an, China; and matters relating to subsequent supplementary agreements (collectively referred to as “such agreements” with the agreement to acquire development projects in Xi'an, China).

According to such agreements, the project company (the seller's subsidiary) provides property construction and development services to the buyer (a subsidiary of the company) and delivers the property to the buyer no later than December 31, 2022 as agreed. After the project company's delivery was overdue, the buyer continued to negotiate with the project company and reminded the project company through written letters and lawyers' letters, etc., requesting it to take measures to fulfill the contract as soon as possible, apply for online registration, and deliver the property as soon as possible, so as to minimize losses between the parties. As of the date of this announcement, the project company has not delivered the property to the buyer.

In order to protect its legal rights and interests, the buyer has filed a civil lawsuit with the Xi'an Yanta District People's Court (Yanta District People's Court) and recently received a summons for hearing. The buyer requested the project company to continue to perform the contract and bear the overdue payment of a penalty of RMB 3680.8 million and related litigation costs. The penalty was temporarily calculated until January 19, 2024, and continued to be claimed until the actual delivery date.

The board of directors believes that the project company has the ability to continue to fulfill its obligations under these agreements. The late delivery of the property mainly affects the company's operating schedule for the “Xi'an Center” development project. Therefore, before the project company delivers the property, the company will actively adjust its business focus and focus existing resources on improving the performance of the “Century Jinhua Xintiandi” department store project and other active projects. The Board believes that these lawsuits do not and will not have a significant adverse impact on the operation and financial situation of the Group's ongoing projects.