Redco Properties Group Limited (the “Company,” stock code: 1622) has announced a Disclosable Transaction under Chapter 14 of the Listing Rules involving the transfer of certain assets to Redco Healthy (stock code: 2370), in which the Company holds a 75% interest. According to the Debts Settlement Framework Agreement signed on January 16, 2026, the total consideration for the disposed assets amounts to RMB159,123,000, settled entirely through an offset against outstanding payable balances owed by the Company’s subsidiaries and joint ventures to Redco Healthy.

The assets include parking spaces (both non-civil defense and civil defense), residential units, and retail units across various projects in Shandong Province, Fujian Province, Guangdong Province, Jiangxi Province, Hunan Province, and Tianjin. The total valuation of these assets was RMB182,930,000 as of September 30, 2025. Following due diligence, the final consideration of RMB159,123,000 has been agreed with reference to valuations provided by an independent valuer, prevailing market conditions, and comparable market prices in nearby areas.

The Company states that, upon completion, no cash will be exchanged. Instead, the RMB159,123,000 receivable is directly offset against refundable deposits of approximately RMB68 million and accrued service fees owed to Redco Healthy. The remaining service fees payable by the Group (excluding Redco Healthy) after the offset will be around RMB90,589,507. The Company also clarifies that, because this transaction effectively restructures assets within the Group, no gain or loss is expected from the transfer, and the net asset position of the Group remains substantially unchanged.

Given that one of the applicable percentage ratios under Chapter 14 of the Listing Rules exceeds 5% but is less than 25%, the transaction constitutes a disclosable transaction. The Company emphasizes that the disposal serves to address liquidity pressures by offsetting liabilities without requiring additional cash outlays and by refining its inventory structure.