An announcement was issued by CDV HOLDINGS (08280) stating that on January 19, 2026, the joint venture, which is an investee company of the Group, entered into a capital reduction agreement with, among others, Newauto Beijing, a wholly-owned subsidiary of the Company, and the other joint venture parties. According to the capital reduction agreement, the joint venture will implement a reduction of its registered capital, targeting a decrease from RMB 31.7805 million to RMB 15 million, and will pay the aggregate cash consideration detailed below to the reducing parties in exchange for the cancellation of their respective equity interests. Following this, each reducing party will no longer hold any equity interest in the joint venture upon receipt of the relevant consideration. As of the date of this announcement, the joint venture was approximately 31.47% and 68.53% owned by Newauto Beijing and the other joint venture parties, respectively. Upon completion of the capital reduction, the Group will no longer hold any equity interest in the joint venture. The capital reduction is expected to yield financial and strategic benefits for the Group. Beyond securing a satisfactory financial return and enhancing liquidity through the receipt of RMB 30 million in cash proceeds, the transaction advances the Group's portfolio optimization and capital recycling strategy by reallocating capital from a non-core joint venture to core business areas with higher strategic priority and anticipated returns; it reduces exposure to risks and earnings volatility associated with the non-core joint venture, thereby improving the Group's overall risk profile and resilience; and it frees up management time and operational effort previously dedicated to overseeing the joint venture, allowing the Group to focus more intently on its principal operations and growth initiatives.