Xingfa Alum (00098) announced on November 6, 2024, that its indirect wholly-owned subsidiary in Guangdong, fspg hi-tech, and star lake bioscience entered into an equity transfer agreement with Guangxin Holdings. According to the equity transfer agreement, Guangdong Xingfa, fspg hi-tech, and star lake bioscience each agreed to sell and transfer 2.80% of the equity of the target company, Guangxin Innovation Research Institute Co., Ltd. Guangxin Holdings agreed to purchase and accept a total of 8.40% of the equity of the target company. The total consideration for the sale is approximately RMB 33.5594 million, with Guangdong Xingfa's consideration for the sale being approximately RMB 11.1865 million. As of the date of this announcement, Guangxin Holdings indirectly holds 91.60% of the target company's equity. Following the completion of the sale, the group will no longer hold any equity in the target company.

The announcement stated that the sale by Guangdong Xingfa enables the Group to realize its investment in the target company and provides the Group with an opportunity to enhance financial flexibility. Considering the target company's recent financial performance, the sale by Guangdong Xingfa is believed to be beneficial for the Group in optimizing its resource allocation, helping the Group manage risks, and achieve long-term stable and healthy development.