China Merchants Shekou Industrial Zone Holdings Co., Ltd. (SZSE:001979) agreed to acquire minority stake in Shenzhen China Merchants Qianhai Industrial Development Co., Ltd. and Shenzhen Nanyou (Group) Co., Ltd. from China Merchants Port Investment Development Company Limited for CNY 9 billion on December 17, 2022. China Merchants Shekou Industrial Zone Holdings Co., Ltd. will acquire 24% stake in Shenzhen Nanyou (Group) Co., Ltd. from Shenzhen Investment Holdings Co., Ltd. and 2.89% stake in Shenzhen China Merchants Qianhai Industrial Development Co., Ltd. from China Merchants Investment Development Co., Ltd. by issue of share at CNY 15.06 per share. The issue price for this acquisition is CNY15.06 per share. The number of shares to be issued in this acquisition is 593 million shares, of which, will issue 449 million shares to Shenzhen Investment Holdings and will issue 144 million shares to China Merchants Port. The transaction already gained the following approvals, approval in principle of China Merchants Group, company's directorate for 2022, supervisory board for 2022. Approvals that still need to be obtained, the internal competent authority of the counterparty to the transaction needs to approve the transaction plan, China Merchants Shekou Industrial Zone would need to hold another directorate to approve the formal plan, and shareholders' approval, state-owned assets supervision and management department or other competent units need to approve the transaction plan, and CSRC approval. The China Merchants Shekou Industrial Zone Holdings Co., Ltd.will issue A shares to not more than 35 investors including China Merchants Port to raise supporting funds of not more than CNY 8.5 billion. As of November 2022, total assets and net assets of Shenzhen Nanyou (Group) Co., Ltd. were CNY 25 billion and CNY 19 billion, respectively and total assets and net assets of China Merchants Qianhai Industrial were of CNY 137 billion and CNY 56 billion, respectively. This transaction still needs to be approved by the following: 1. The competent state-owned assets management unit shall issue a formal approval on the transaction plan; 2. The shareholder meeting of the listed company; 3. The registration is approved or approved by the China Securities Regulatory Commission. This transaction was approved by the following: already gained the approval in principle of China Merchants Group , The preliminary plan was approved by the 12th session of the company's 3rd directorate for 2022 and the formal plan was approved by the 2nd session of the company's 3rd directorate for 2023, The preliminary plan was approved by the 3rd session of the company's 3rd supervisory board for 2022 and the formal plan was approved by the first session of the company's 3rd supervisory board for 2023 and Shenzhen Investment Holdings Co., Ltd., as a state-owned asset management unit with authority, convened a board meeting to approve the transaction plan and issued a formal decision. As of May 29, 2023, The transaction has been approved by Shenzhen Stock Exchange M&A and Reorganization Review Committee. The transaction has been approved by the the shareholders of China Merchants Shekou Industrial Zone Holdings

China Merchants Securities Co., Ltd. (SHSE:600999) and CITIC Securities Company Limited (SHSE:600030) acted as financial advisors, Shu Jin Law Firm acted as legal advisor and Deloitte Touche Tohmatsu Certified Public Accountants LLP acted as accountant for China Merchants Shekou Industrial Zone Holdings Co., Ltd. (SZSE:001979).