XJ International Holdings Co., Ltd. announced that its wholly owned subsidiary, Yibin Xuande Education Consulting Management, signed a disposal agreement on 7 August 2026 to sell a parcel of land and 14 completed school buildings in Gao County, Yibin City, Sichuan Province, to Gaoxian Huirun Education Co., Ltd., a local state-owned entity, for RMB247.85 million.

The asset package comprises 165.26 mu (110,172.23 sq m) of land use rights—valid from 2020 to 2070—and 83,741.64 sq m of gross floor area across 14 educational buildings. The site has remained idle after the project failed to secure inclusion in Sichuan Province’s 14th Five-Year Higher Education Establishment Plan, preventing the group from obtaining operating qualifications.

Payment terms require the purchaser to settle 40% of the consideration (RMB99.14 million) within 30 days of signing, 30% (RMB74.36 million) by 31 December 2027, and the remaining 30% (RMB74.36 million) by 31 December 2028, all in cash.

As of 28 February 2026, the land and properties carried an unaudited net book value of RMB228.14 million. Based on this figure and estimated transaction costs, XJ International anticipates recognising an unaudited disposal loss of approximately RMB27.20 million upon completion.

The deal falls under a “discloseable transaction” per Hong Kong Listing Rules, as the highest applicable percentage ratio exceeds 5% but is below 25%. No shareholder approval is required.

Management cited the disposal as a move to revitalise idle assets, recover a significant portion of prior investment and reduce further expenditure, thereby improving capital efficiency.