GRAND BAOXIN (01293) has announced that on May 15, 2026, its indirectly held non-wholly owned subsidiary, Urumqi Yanbao, entered into an agreement with an independent third-party buyer. According to the agreement, Urumqi Yanbao will sell all of the issued share capital of Karamay Yanbao for approximately RMB 24.36 million.

In a related transaction, another indirectly held non-wholly owned subsidiary, Beijing Dongbao, has also reached an agreement with the same buyer to sell the entire issued share capital of Karamay Xindebao for RMB 1 million.

Upon completion of these transactions, the company will no longer hold any equity interest in these target companies, and they will cease to be subsidiaries of GRAND BAOXIN. Consequently, the financial position and operating results of the target companies will no longer be consolidated into the group's financial statements.

The company stated that the divestment is part of a strategic initiative to optimize the group's production and operational footprint and enhance resource allocation efficiency. Management views the sale as an opportunity to improve the group's financial condition and streamline its operations.

The terms of the agreements, including the consideration, were determined through fair negotiations between the parties involved.