CHI MER LAND (00978) intends to acquire a 50% equity interest in Foshan Yiyun Real Estate Co., Ltd.

CHI MER LAND (00978) announces that on October 16, 2026, the Company's indirectly wholly-owned subsidiary Guangzhou China Merchants Real Estate Co., Ltd. (Guangzhou China Merchants) entered into an equity transfer agreement with WHARF REIC (Guangzhou) Limited (Wharf Guangzhou) and Foshan Yiyun Real Estate Co., Ltd. (the Target Company), pursuant to which Wharf Guangzhou agreed to transfer its 50% equity interest in the Target Company to Guangzhou China Merchants at a consideration of approximately RMB938 million, together with Wharf Guangzhou's creditor's rights of approximately RMB185 million against the Target Company's project company, while Guangzhou China Merchants will assume the debt of approximately RMB1,008 million owed by Wharf Guangzhou to the Target Company. Upon completion of the acquisition, the Target Company will become an indirectly wholly-owned subsidiary of the Company. Pursuant to the equity transfer agreement, the transfer consideration will be calculated as follows: the consideration for the equity to be sold of approximately RMB938 million, plus Wharf's creditor's rights of RMB185 million, minus Wharf's debt of approximately RMB1,008 million, which equals approximately RMB115 million, and will be paid by Guangzhou China Merchants to Wharf Guangzhou in cash.