AGILE GROUP (03383) has announced that on April 22, 2026, the seller, an indirect non-wholly-owned subsidiary of the company, Nantong Yaxin Enterprise Management Consulting Co., Ltd., plans to sell a 50% equity interest in the project company, Zhejiang Xiangya Real Estate Development Co., Ltd., to the buyer, China Real Estate Development Group Nantong Co., Ltd., for a consideration of RMB95 million. The consideration will be settled by the buyer through the transfer of debt to the seller. The transferred debt will be repaid by transferring the target properties to the seller. Upon completion of the disposal, the company will no longer hold any interest in the project company, and the project company will cease to be a subsidiary of the company. The target properties consist of certain unsold properties held by the project company. The project company is a limited liability company established in China, engaged in real estate development and operation. It is currently owned 50% by the buyer and 50% by the seller. The project company was established for the joint development of the Huzhou No. 1 Project, a commercial and residential project located in Huzhou City, Zhejiang Province, China. The total gross floor area of the project is approximately 130,500 square meters, with a saleable area of about 151,427 square meters for commercial and residential purposes, including residential properties, commercial properties, parking spaces, storage rooms, and gymnasiums. As of the date of this announcement, the unsold properties under the project, including the target properties, comprise 172 residential units, 28 commercial units, 423 parking spaces, 37 storage rooms, and 2 gymnasiums, with a total saleable area of approximately 37,280 square meters. The total recorded price is RMB625.8 million, with an average recorded price of RMB16,786 per square meter. Given the changes in China's real estate market, the disposal is primarily due to differences in business strategy and operational approach between the buyer and the seller regarding the future development and operation of the project. The seller and the buyer were unable to reach a consensus on the timing and pricing strategy for the remaining properties. Considering that the project company has not been generating profits for the group, the directors believe the disposal is a pragmatic arrangement for the group and provides an opportunity to exit the project. After the disposal is completed, the buyer will assume full responsibility for the project's operation and development, while the group will retain its economic interest in the form of debt, expected to be realized gradually in the later stages. The seller will gain flexibility in disposing of these assets, either through sale or by offsetting the seller's debts and other operational liabilities.