Xingning City Urban Investment and Development Co., Ltd. entered into Equity Transfer Intention Agreement to acquire 92% stake in Guangdong Mingzhu Group Urban Operations Development Co., Ltd. from Guangdong Mingzhu Group Co.,Ltd (SHSE:600382) in cash on October 15, 2021. Xingning City Urban Investment and Development Co., Ltd. entered into Equity Transfer Intention Agreement to acquire 92% stake in Guangdong Mingzhu Group Urban Operations Development Co., Ltd. from Guangdong Mingzhu Group Co.,Ltd (SHSE:600382) for CNY 2.8 billion on December 2021. Within 30 days, Xingning City Urban shall pay no less than CNY 100 million in the bank account designated by Guangdong Mingzhu Group Co.,Ltd as the advance payment for the equity transfer. If formal equity transfer agreement is signed, then this amount will be deducted towards equity transfer price. However if stake is not acquired then Guangdong Mingzhu Group Co.,Ltd will return advance payment to Xingning City Urban. Guangdong Mingzhu Group Urban Operations Development reported total assets of CNY 3.8 billion and total common equity of CNY 3.4 billion till June 30, 2021. The transaction is subject to approval of Board and shareholders of Guangdong Mingzhu Group Co.,Ltd and Xingning Municipal Government or other review authority. As of December 7, 2021, Guangdong Mingzhu Group Urban Operations Development held a shareholders meeting to agree on matters related to this major asset sale. Guangdong Mingzhu held the sixth temporary meeting of the Ninth Board of Directors in 2021, which reviewed and approved the proposals related to the sale and purchase of this major asset. On December 7, 2021, Xingning Urban Investment held a meeting of shareholders to agree to matters related to this major asset sale. Western Securities Co., Ltd. acted as financial advisor, Beijing Kangda acted as legal advisor and Reanda Certified Public Accountants (Special General Partnership) aced as an auditor to Guangdong Mingzhu in the transaction. As on December 30, 2021, Guangdong Mingzhu Group Co.,Ltd shareholders approved the transaction.

Xingning City Urban Investment and Development Co., Ltd. completed the acquisition of 92% stake in Guangdong Mingzhu Group Urban Operations Development Co., Ltd. from Guangdong Mingzhu Group Co.,Ltd (SHSE:600382) on December 31, 2021. Guangdong Mingzhu Group Urban Operations Development has been renamed to Xingning City Urban Operations Development Co., Ltd. As of the date of this report, Xingning City Urban Investment and Development Co., Ltd. has completed the payment of the first equity transfer price as stipulated in the agreement. In the follow-up, the remaining equity transfer payment should be paid during the period from January 1, 2022 to December 31, 2024 in accordance with the "Equity Transfer Agreement".