Power Development (01277) plans to acquire 100% of Taiyuan's local shares for 384 million yuan and acquire Dongzhimen property for a total of 86.33 million yuan

Zhitong Finance App News, Power Development (01277) announced that on December 4, 2025, Power Qinhuangdao and Power Shanxi signed a sixth supplementary agreement with seller 2 Qingdao Shilu Ocean Big Data Investment and Development Co., Ltd., seller Si Zhongshan Field Real Estate Development Co., Ltd., and Zunyi. Based on this:

(i) All properties that have not yet completed property transfer registration will no longer be sold to Liangqinhuangdao, and in 2025, the rights and liabilities of the property seller and power Qinhuangdao to terminate the property in 2025 under the 2022 property purchase agreement will end on the effective date of the sixth supplementary agreement; and (ii) Power Shanxi agreed to acquire, and Zunyi actually agreed to sell 100% of Taiyuan's shares, at a total cost of RMB 384 million, offset by the amount already paid for the property terminated in 2025. After such offsetting, the balance of equity compensation payable by Power Shanxi to the Zunyi site was RMB 130 million. On the same day, Power Shanxi and Zunyi Field signed a share transfer agreement on the terms of acquiring 100% of Taiyuan's shares.

On December 4, 2025, Guangdong and Power Qinhuangdao signed debt repayment agreements with the field and Beijing site. Power Qinhuangdao agreed to buy, while Beijing agreed to sell Dongzhimen properties, including (i) Dongzhimen property No. 3110, at a cost of RMB 45.1 million; and (ii) Dongzhimen 3111 property, at a cost of RMB 41.23 million (a total of RMB 86.33 million). The contracting parties agree that (a) in order to complete the transfer of title to Dongzhimen Property No. 3110 and Dongzhimen Property No. 3111, the relevant taxes payable in Beijing will be RMB 1.05 million (to transfer Dongzhimen Property No. 3110) and RMB 4.89 million (to transfer Dongzhimen Property No. 3111); (b) Beijing's on-site liabilities of RMB 13.5 million will be paid by Qinhuangdao and Guangdong Field on behalf of Beijing. After deducting all of the above amounts from the total cost of the Dongzhimen property, the net cost payable by Qinhuangdao and Guangdong for the Dongzhimen property is RMB 56.89 million (net cost of Dongzhimen property). This amount will be offset by the amount due in 2024. Since the net cost of Dongzhimen property was higher than the 2024 accounts payable, the parties agreed to use the remaining amount of RMB 2,8352 million to offset the actual payments (if any) due to the Group under the 2025 Property Management Services Framework Agreement.

On the date of this announcement, Power Qinhuangdao paid the seller RMB 803 million for the acquisition of further adjusted target properties in 2024 in accordance with the 2022 property purchase agreement. However, as of the date of this announcement, the overall progress of the property registration process for the target properties that have been further adjusted in 2024 has not been completed. In order to protect and protect the interests of the company and shareholders, the Group has been actively seeking opportunities and finding suitable assets to replace the target property further adjusted in 2024 with other assets that can be obtained from the seller, Zunyi site and Mr. Zhang Liang. As a result, the Group has obtained a guarantee to acquire 100% of Taiyuan's shares from Zunyi in accordance with the share transfer agreement, and the cost of acquiring 100% of Taiyuan's on-site shares should be fully offset by the amount already paid for the terminated property in 2025.

Dongzhimen Property is a high-quality asset located in a prime location in Beijing, with strong potential for capital appreciation. The Board believes that the acquisition of Dongzhimen Property is commercially reasonable and in line with the Group's strategic goals. The terms and conditions of a debt repayment agreement are determined by the parties involved in negotiations on the principle of fairness.