POWERLONG (01238) announced on December 23, 2025, that the group has entered into a cooperation agreement with Lianshang Yihao, Lishui Lianjia, and Tianjin Yuanjian. Shanghai Ruilong, an indirect wholly-owned subsidiary of the company, has conditionally agreed to sell, while Lianshang Yihao has conditionally agreed to purchase 100% equity in the target company, Hangzhou Huazhan Real Estate Development Co., Ltd., which wholly owns the target project. Upon completion of the equity transfer, the target company will cease to be a subsidiary of POWERLONG.

The target project is a commercial complex developed by the group and wholly owned by the target company. Located at No. 3867 Binsheng Road, Puyan Street, Hangzhou, Zhejiang Province, China, it includes the shopping mall complex known as Hangzhou Binjiang POWERLONG City and the hotel named Hangzhou Binjiang POWERLONG Artel Hotel.

By transferring ownership of the target company and project to Lianshang Yihao, the group will secure cash proceeds within a relatively short transaction period. These proceeds will enhance the group's liquidity and support its daily operations and property development projects. Additionally, the group retains the right to repurchase the target company and project from Lianshang Yihao at a pre-agreed price, allowing it to regain ownership and control based on future strategic planning, liquidity needs, and business requirements.

The estimated net proceeds from the equity transfer are approximately RMB 997 million. Of these proceeds, 45% will be allocated to property development to ensure timely project delivery, 20% for general operating expenses, 15% for tax obligations, 10% for the group's offshore restructuring, and the remaining 10% for onshore restructuring.