Midea Real Estate Holding Limited agreed to Spin-Off Property development and sales business on June 23, 2024. The Distribution in Specie shall be conducted on the basis of one SpinCo Share for every company Share. The Directors, excluding the independent non-executive Directors who will form their views after considering the advice from the independent financial adviser to the Independent Board Committee and the Independent Shareholders, believe that it is in the best interest of the Company and the Shareholders to effect the Proposed Distribution.

For the period ended December 31, 2023, the separated business reported total assets of CNY 197.1 billion, and revenue of CNY 70 billion. A date for determining entitlements of the shareholders to the proposed distribution, which is expected to be September 10, 2024. Huatai International Financial Holdings Company Limited acted as a financial advisor to Midea Real Estate Holding Limited.