NE ELECTRIC's subsidiary plans to sell a 10.5% equity stake in HNA Tianjin Center Development for 3.58 million yuan

According to the announcement from Northeast Electric (00042), on September 29, 2025, the company and the transferor Hainan Yitang Flying Hotel Management Co., Ltd. (Hainan Yitang, an indirect non-wholly-owned subsidiary of the company) entered into a share transfer agreement with the transferee Beijing Haihongyuan Enterprise Management Consulting Co., Ltd. (Beijing Haihongyuan). The transferor agreed to sell, and the transferee agreed to purchase a 10.5% equity stake in the associated company HNA Tianjin Center Development Co., Ltd. (Tianjin Center) (which is the entire equity stake held by the group in the associated company) for a consideration of RMB 3.58 million (approximately HKD 3.915 million).

As of the date of this announcement, the associated company Tianjin Center is a joint venture of the group, with the transferor holding a 10.5% equity stake. Upon completion of the sale, the group will no longer hold any equity in the associated company, and its performance will no longer be reflected in the company's share of joint venture performance.

The sale of the minority stake in the associated company is beneficial for the group to revitalize assets and integrate resources, supplement working capital needs, and enhance the group's ability to withstand risks and sustain operations.

The proposed sale of the 10.5% equity stake means that the group will no longer have any rights in the business operations of the associated company. Upon completion of the sale, the net proceeds received will also help increase the group's cash flow