LVJI TECH (01745) plans to sell 85 million yuan of bad debts from three companies, including Ningxia Shuidonggou Tourism Development Co., Ltd. and Ningxia Western Sunshine Travel Agency Co., Ltd.

LVJI TECH (01745) announced that on August 5, 2026, its wholly-owned subsidiary LVJI TECH Group entered into an agreement with Ning'ao Xincheng to transfer the relevant debts for a price of RMB 85 million. The subject of the sale consists of these debts, specifically the non-performing debts of three companies: Ningxia Shuidonggou Tourism Development Co., Ltd., Ningxia Western Sunshine Travel Agency Co., Ltd., and Ningxia Xiji Huoshizhai Tourism Development Co., Ltd., along with the associated mortgage rights and other incidental rights. As of February 11, 2025 (the cut-off date for calculating the unpaid principal balance, interest balance, and penalties of these debts), the unpaid principal balance of these debts was approximately RMB 176.6 million, along with interest of approximately RMB 131 million and penalties of RMB 1.5 million, totaling approximately RMB 309 million. The final amounts of the principal and interest will be subject to the legal documents and the calculation method adopted in the enforcement phase. As of December 31, 2025, the carrying amount of these debts on the Group's accounts was approximately RMB 45.285 million. The announcement stated that the sale allows the Group to convert these debts into cash, expedite the recovery of non-performing loans, reduce the time, costs, and uncertainties associated with further collection, litigation, or enforcement actions, and improve the Group's liquidity and resource allocation. At the same time, the sale is based on the Group's strategic focus on its core business of online electronic guiding, temporarily setting aside plans for expanding its tourism site management business.