Zhong Huirong (01290) announced that on October 11, 2024, its indirectly wholly-owned subsidiary Hui Fang He Zhong participated in an auction and successfully won the auction of the Hongzhuang Commercial property located in Suzhou, China, with a consideration of RMB 70.8334 million.

The Group is a comprehensive financial services provider, mainly offering clients a variety of financial services such as pawn, technology microloans, commercial factoring, financing leasing, art investment, private equity investment, special asset investment, transfer loan funds, etc. For the benefit of the company and all shareholders, the Group actively seeks investment opportunities related to restructuring companies and foreclosed assets. After the acquisition, Hongzhuang Commercial will continue to be leased to existing tenants until the leasing agreement ends. Hongzhuang Commercial is currently rented to enterprises of various scales and types, located in areas with active property leasing markets. After the completion of the acquisition, the Group will also seek potential buyers to sell Hongzhuang Commercial at the right time. The acquisition is part of the Group's general and normal special asset investment business process, and it is expected that Hongzhuang Commercial will provide the Group with stable cash flow and good investment returns. Following all reasonable inquiries, to the best knowledge, information, and belief of the directors, taking into account the current market conditions, the geographical location of Hongzhuang Commercial, and other factors such as the development potential of Hongzhuang Commercial, the Board of Directors believes that the acquisition transaction will bring rental income to the Group, strengthen the Group's asset base, and enable the Group to potentially increase its capital value. Considering that the acquisition transaction and subsequent use of Hongzhuang Commercial are beneficial to the Group's long-term business prospects as well as the Group's asset appreciation and income diversification, the Board of Directors believes that the acquisition transaction is in the overall interest of the company and its shareholders.