BANK OF GANSU (02139) announced plans to dispose of credit assets through a public bidding process, with a combined principal balance and interest totaling approximately RMB175 million, in a move to further alleviate pressure from non-performing assets on its books.

Following the completion of the public bidding selection procedure, the bank confirmed Gansu Asset Management as the winning bidder.

On December 29, 2025, the bank entered into an asset transfer agreement with Gansu Asset Management, pursuant to which the bank agreed to transfer the credit assets for a consideration of RMB102 million.

The assets being transferred are the credit assets specified in the agreement, which include: the principal balance and interest of the non-performing assets as of the transaction reference date (November 20, 2025), totaling approximately RMB175 million; all related rights, interests, and benefits associated with the aforementioned credit assets; the bank's entire ownership and related interests in the credit assets (present and future, actual and contingent); all repayments that have become due or will become due generated by the credit assets; the right to demand, sue for, recover, and accept all payments due related to the credit assets; and all rights and legal remedies associated with the realization and enforcement of each credit asset.

The credit assets are classified as non-performing assets on the bank's books.

The transfer of these credit assets is beneficial for alleviating the pressure from non-performing assets borne by the bank, while also serving as an effective method to revitalize credit resources and fully utilize market-based means for disposing of non-performing assets; it is expected to reduce the bank's asset losses, improve asset quality, and further solidify the foundation for the bank's high-quality development.

Based on the calculation of the difference between the consideration for the transfer (RMB102 million) and the principal book value of the credit assets (approximately RMB156 million) as of the transaction reference date, the bank anticipates recording an aggregate loss of approximately RMB53.8799 million (unaudited) from the transfer.

Proceeds from the transfer will be used for the bank's general working capital.

The credit asset transfer was conducted via public bidding, with the bank having sent invitations to six asset management companies qualified for the bulk acquisition of financial non-performing assets, including Gansu Asset Management and five independent third-party asset management companies, to participate.

The bank conducted the public bidding selection in accordance with the "Administrative Measures for the Bulk Transfer of Non-performing Assets by Financial Enterprises" (Cai Jin [2012] No. 6), ultimately resulting in Gansu Asset Management's winning bid.

This transfer of credit assets through public bidding complies with relevant legal regulations governing the transfer of non-performing assets and aligns with industry practices for the bulk transfer of non-performing assets.