Shenzhen Investment Limited (00604) disclosed an agreement, signed on 6 February 2026, to dispose of a 70% stake in Shenzhen Jinghua Displays Electronics Co., Ltd. (“Jinghua Electronics”) to Shahe Industrial for RMB273,752,500 in cash. Upon completion of the transaction, Jinghua Electronics will cease to be a subsidiary of Shenzhen Investment and will no longer be consolidated into the group’s financial statements.

According to the announcement, Shenzhen Investment anticipates a pre-tax gain of approximately RMB79 million from this deal, calculated by comparing the disposal consideration with Jinghua Electronics’ appraised net asset value on the valuation benchmark date of 30 September 2025. Jinghua Electronics specializes in R&D, production, and sales of intelligent display controllers and LCD devices, businesses considered to have low correlation with Shenzhen Investment’s strategic focus on real estate asset management and operation services.

The buyer, Shahe Industrial, is held 34.02% by Shum Yip Shahe (Group) Co., Ltd., which is a non-wholly-owned subsidiary of Shum Yip Group, making Shahe Industrial a connected person under the Listing Rules. Because the applicable percentage ratio under the Listing Rules exceeds 0.1% but remains below 5%, the transaction is subject to reporting and announcement requirements but exempt from independent shareholders’ approval.

As part of the deal, the parties entered into a performance compensation agreement, under which Shenzhen Investment guarantees that Jinghua Electronics’ net profit for the three financial years after completion will meet an agreed level, with compensation payable to Shahe Industrial in case of any shortfall. The proceeds are intended to support Shenzhen Investment’s working capital, further supporting its transformation to a real estate asset management and service-oriented model.