Friendship Group: Intends to transfer 100% equity of Huajun Real Estate Company.

Friendly Group announced that the company intends to sign a framework agreement for the transfer of equity with Herui Business Investment Group, transferring 100% of the equity of its wholly-owned subsidiary Huajun Real Estate Company. The transfer price of the equity shall be based on the principle and bottom line of not less than the net assets of the target company and not less than the total amount of long-term investment by the company in the target company. The specific transaction price will be determined after auditing and evaluation results. This transaction is a debt-bearing transaction, where Herui Business Investment Group will take over the debts that the target company should repay while acquiring 100% equity of the target company. The matter has been approved by the board of directors and still needs to be submitted for approval at the shareholder meeting. It is expected that the equity transfer will have a significant impact on the company's operating performance in 2025.