According to the announcement by China Aluminum International Engineering Corporation (02068) on November 21, 2024, the board of directors approved the company's agreements with three target companies, as well as with Zhonglu Suhe and investors individually. Under the agreements, the target companies will introduce investors and Zhonglu Suhe as qualified investors through capital increase and share expansion, entering the investment phase through the Guangdong United Equity Exchange Center trading process, with a total consideration of RMB 2.29 billion, to be paid in cash. After the completion date, the company will continue to hold no less than 60% of the shares in each target company, which will remain subsidiary companies of the company and be included in the company's consolidated financial statements.

After the completion date, the company's ownership in Changsha, Kunming, and Shenyang institutes will decrease from 100% to no less than 60% each. Therefore, according to Chapter 14 of the Hong Kong Listing Rules, this capital increase transaction constitutes a deemed disposal of assets.

Based on the total amount of RMB 2.29 billion for this capital increase, and the audited financial data of Changsha, Kunming, and Shenyang institutes in 2023 as the calculation basis, the maximum applicable percentage derived from the deemed disposal of assets exceeds 5% but is less than 25%.

The deemed disposal of assets is beneficial for advancing the long-term development strategies of the three target companies, enhancing the company's profitability, accelerating the transformation of the company's business structure, strengthening the foundation for the company's development, enhancing core competitiveness, and aligning with the interests of all shareholders.