According to the announcement of Zhaojin Mining (01818) on October 25, 2024, Spaco and a financial company entered into a share transfer agreement. The financial company agreed to transfer the target shares to Spaco at a price of 0.181 billion Hong Kong dollars. The target shares are 68.712 million H shares of Weihai Bank (09677), accounting for approximately 1.15% of the total issued share capital of Weihai Bank. The original cost of the financial company's acquisition of the target shares was approximately 0.222 billion Hong Kong dollars.

In accordance with the notice issued by the Office of the China Banking and Insurance Regulatory Commission, including financial companies, conglomerates' financial companies are required to liquidate their holdings of non-fixed income securities by December 31, 2024. Therefore, the financial company should sell all its equity (i.e., target shares) in Weihai Bank within the specified time limit. The contracting parties noted the limited liquidity of Weihai Bank's H shares and believed that the transaction was the most effective way to complete the required sale.

The company and Spaco also noted the operational and financial status of Weihai Bank, as well as its past dividend records. Weihai Bank is a city commercial bank in Shandong Province with prominent regional advantages and a well-established network. From an accounting perspective, before and after the completion of the transaction, the target shares shall be treated as equity investments measured at fair value by the Group and any changes will be recognized in other comprehensive income. The transaction is an intra-group transaction and has no impact on the company's comprehensive income or financial statements. In addition, the price is discounted compared to the market price of Weihai Bank's H shares reported on the HKEX. The board of directors believes this is in the overall interest of the company and shareholders.