New City Development Group Limited (the “Group”) has disclosed that in early 2025, its subsidiary, Guangdong Changliu Investment Company Limited, was informed that the investment properties located at Nos. 20–22 Chigang West Road in Haizhu District, Guangzhou, were included in a public welfare land acquisition scope. The forced termination of an existing rental agreement led the principal tenant, Guangdong Changna Investment Development Company Limited, to request participation in subsequent arrangements.

A settlement agreement stipulates that Guangzhou Changliu must pay RMB 180.00 million in compensation. The Group is assessing the payment method and schedule. According to the Board’s resolution, a one-year RMB-denominated note with an annual interest rate of 4% is to be issued to Guangdong Changna and its partners. The Group will work toward finalizing the relevant land acquisition compensation arrangement with the government.

Further announcements will be made as necessary under applicable listing regulations. Shareholders and potential investors are advised to exercise caution when trading shares of the Group.