Zhengye International Holdings Company Limited announced that its non-wholly owned subsidiary, Zhongshan Lianhe Hongxing Zhizao Company Limited, has signed a sale-and-purchase agreement on 27 March 2026 to dispose of the 10th floor of Factory Building No. 1 in the Songwan Zhigu Intelligent Manufacturing Project, Zhongshan City.

The property, an industrial unit with a gross floor area of 1,340.81 sq m, is being sold to Zhongshan Taizi Supply Chain Co., Ltd. for RMB4.15 million in cash. The buyer is wholly owned by Ms. Chen Wei, an executive director and chief financial officer of Zhengye Intl, rendering the deal a connected transaction under Chapter 14A of the Hong Kong Listing Rules. All percentage ratios (other than the profits ratio) are below 5%, so the transaction requires only reporting and announcement.

Payment terms stipulate 40% (RMB1.66 million) due on or before 27 March 2026 and the remaining 60% (RMB2.49 million) on or before 30 June 2026. The latter will be funded via bank mortgage; any shortfall will be repaid in equal monthly instalments over up to five years at an interest rate linked to the over-five-year Loan Prime Rate.

An independent valuer appraised the property at RMB4.16 million as of 2 March 2026 using the market comparison method. The carrying value on Zhengye Intl’s books as of 28 February 2026 was RMB3.80 million, implying an estimated disposal gain of roughly RMB0.01 million, subject to audit adjustments.

Net proceeds will be used as general working capital or to support further development of the Songwan Zhigu project. Ms. Chen Wei abstained from the board vote approving the transaction; all other directors, including independent non-executive directors, deemed the terms fair and reasonable and in the interests of shareholders.