SDIC Zhonglu: Controlling Grandson Company Expected to Receive Housing Expropriation Compensation of RMB 72.1587 Million

SDIC Zhonglu announced that its controlled subsidiary's subsidiary, Xuzhou Zhongxin Fruit Industry Co., Ltd., intends to sign a housing expropriation compensation agreement with the Fengxian County Zhongyangli Subdistrict Office. Due to urban renewal and redevelopment, its factory area in the Wenyuan Qizhuang Phase II block is being expropriated, with total compensation of RMB 72.1587 million. The compensation adopts a combination of property rights exchange and monetary compensation, of which RMB 43.68 million is used to exchange for 25,146 square meters of factory buildings under the name of Chanfa Group, and the remaining RMB 28.4787 million is monetary compensation. Xuzhou Zhongxin is required to complete relocation before November 25, 2026, and the monetary compensation will be disbursed in installments. This matter has been reviewed and approved by the company's board of directors and still needs to be submitted to the shareholders' meeting for review. There is uncertainty in the subsequent execution process.