On November 25, 2025, Xinyuan Technology (a wholly-owned subsidiary of XINYUAN PM) signed Asset Compensation Agreement No. 1 with Xinyuan Property Affiliate Group 1. Under the agreement, Xinyuan Property Affiliate Group 1 agreed to transfer (and ensure the transfer by its respective subsidiaries, where applicable) Target Property Group 1 to Xinyuan Technology for a total consideration of RMB 89.0731 million. The payment will be settled through the offset of prepayments.
On the same day, Xinyuan Technology and Beijing Xinyuan Hongsheng (another wholly-owned subsidiary of XINYUAN PM) entered into Asset Compensation Agreement No. 2 with Xinyuan Property Affiliate Group 2. The latter agreed to transfer (and ensure the transfer by its respective subsidiaries, where applicable) Target Property Group 2 to Xinyuan Technology and Beijing Xinyuan Hongsheng for a total consideration of RMB 41.07 million. The payment will be settled by offsetting indemnity amounts.
Additionally, Xinyuan Technology signed Asset Compensation Agreement No. 3 with Zhengzhou Hangmei, under which Zhengzhou Hangmei agreed to transfer (and ensure the transfer by its subsidiaries, where applicable) Target Property Group 3 for a total consideration of RMB 3.7596 million. The payment will be settled by offsetting outstanding receivables owed by Zhengzhou Hangmei to Xinyuan Technology.
Separately, Xinyuan Technology entered into a 20-year lease agreement with Tianjin Xinyuan for rental properties. The rent will be settled by offsetting outstanding receivables owed by Tianjin Xinyuan to Xinyuan Technology.
Given Xinyuan Property Holdings' liquidity challenges and its involvement in multiple litigation and arbitration cases, XINYUAN PM believes it is unlikely that Xinyuan Property Holdings will fully repay the prepayments, indemnities, and outstanding receivables in cash in the near term. Further legal action or arbitration against Xinyuan Property Holdings may incur legal costs for both parties without guaranteeing effective recovery of the amounts owed.