Chen Xing announced on October 21 that on September 23, 2024, its indirect wholly-owned subsidiary, Taiyuan Chen Ya Real Estate Development Co., Ltd. ("Taiyuan Chen Ya"), successfully won two pieces of land located in Jiaocao Ping District, Taiyuan City (referred to as "Plot A" and "Plot B", collectively known as "Jiaocao Ping Plot") through online bidding, and signed a confirmation letter for the transaction of state-owned construction land use rights with the Taiyuan City Planning and Natural Resources Bureau ("Taiyuan City Planning and Natural Resources Bureau"). According to the confirmation letter, Taiyuan Chen Ya must sign a state-owned construction land use rights transfer contract with Taiyuan City Planning and Natural Resources Bureau after signing the confirmation letter to acquire Jiaocao Ping Plot.

On October 10, 2024, Taiyuan Chen Ya signed a state-owned construction land use rights transfer contract with Taiyuan City Planning and Natural Resources Bureau.

The company announced that Taiyuan Chen Ya has entered into a redevelopment agreement with (including) the Jiaocao Ping District People's Government to renew and redevelop the plot located at Beigunian Village in Jiaocao Ping District, Taiyuan City. According to the terms of the redevelopment agreement, Taiyuan Chen Ya is responsible for paying a total consideration of approximately RMB 2,320,300,000 as compensation and resettlement costs for the redevelopment plan, and the related redevelopment costs will be repaid to this group in the form of government subsidies for the land price of Beigunian Village.

Shortly before the online bidding ended, Taiyuan Chen Ya had already received RMB 544,100,000 from the local government in part of the above-mentioned government subsidies. Taiyuan Chen Ya has agreed with the local government that this amount will be used as payment for the acquisition of Jiaocao Ping Plot. Apart from the aforementioned government subsidies, Taiyuan Chen Ya has almost no additional payable costs related to the acquisition.

Considering the location and designated land use of Jiaocao Ping Plot, the directors believe that the acquisition of Jiaocao Ping Plot is in line with the group's business development strategy and planning.