REDCO GROUP (01622) announced that on January 16, 2026, REDCO Properties Group Limited (the Company, together with its subsidiaries, collectively referred to as the "Group"), acting on behalf of its member companies, entered into a debt settlement framework agreement with REDCO Health, a subsidiary in which the Group holds a 75% equity interest.

The contracting parties conditionally agreed that the Group shall sell assets to REDCO Health (the "Asset Transfer") for a total consideration of RMB 159 million.

The consideration receivable by the Group for the Asset Transfer shall be used to offset, on a dollar-for-dollar basis, the outstanding refundable deposit of approximately RMB 68 million and the total service fees payable by the Group to the REDCO Health Group, up to a maximum of RMB 159 million.

Consequently, the REDCO Health Group will not make any cash payment to the Group for the Asset Transfer.