Gelonghui, May 28, 丨 CITIC Financial Assets (02799.HK) announced that according to the Ministry of Finance's regulations on the transfer of state-owned assets of financial enterprises, the company transferred 60% (underlying shares) of the company's issued shares to CITIC Group by means of an agreed transfer. On May 28, 2024, the company signed a share transfer agreement with CITIC Group. According to this, the company conditionally agreed to transfer and CITIC Group conditionally agreed to transfer the underlying shares, accounting for 60% of the issued shares of the Golden Rental Company. The total cost of the sale was RMB 12 billion. After the sale is completed, the company will hold 19.92% of the issued shares of the Golden Rental Company. The Golden Rental Company will no longer be a subsidiary of the Company and its financial results will not be consolidated into the Group's financial statements.

A financial leasing company is a company limited by shares incorporated in China. A gold leasing company is a national non-bank financial institution supervised by the General Financial Supervisory Authority. On the date of the share transfer agreement, the company held 79.92% of its issued shares and is a subsidiary of the company. Its main business scope is to carry out financial leasing business and other businesses approved by the General Financial Supervisory Authority.

The board of directors believes that the sale matters will help the company to persist in returning to its roots, return to the main business, ensure sustainable management and development, and meet the regulatory authorities' requirements for financial asset management companies to gradually withdraw from non-main businesses. In addition, the parent company's financial statements can supplement the parent company's core Tier 1 capital at once. After considering the impact of income tax and stamp duty, a capital supplement effect exceeding RMB 6.3 billion can be achieved. The release of capital can be used to expand the group's main non-performing asset business, which helps the group to persist in strengthening and refining its main business, concentrate more resources and energy on the development of the main non-performing asset business, and is beneficial to the future development of the group and the long-term interests of shareholders.

In accordance with the principles of marketization and legalization, after implementing the transfer of five licensed subsidiaries, including Huarong Securities and Huarong Trust, the company has been proceeding with the transfer of the remaining licensed subsidiaries in an orderly manner. The sale is an important step in implementing regulatory requirements in the early stages. After the sale is completed, it helps the company to focus on its main business, give full play to its functional advantages, prevent and mitigate financial risks, support the reform and insurance of small and medium-sized financial institutions, and contribute to maintaining the steady operation and healthy development of the financial market.