Ling Yue Services Group Limited (Ling Yue Services, 02165) disclosed that its wholly owned subsidiary Chengdu Huichen Jingyue Real Estate will invest in Chengdu Ruihao Real Estate (the “Target Company”) under a three-part capital arrangement signed on 8 April 2026 after market close.

Transaction structure 1. Capital injection: Huichen Jingyue will subscribe RMB 4.00 million of new registered capital, while existing shareholder Chengdu Xingsheng Huashang Commercial Management will contribute RMB 2.00 million. Post-transaction, registered capital rises to RMB 16.00 million, with Huichen Jingyue holding 25% and Xingsheng Huashang 75%.

2. Reimbursement of project prepayment: Huichen Jingyue will refund Xingsheng Huashang RMB 58.73 million, representing its pro-rata share of the RMB 234.93 million already advanced to the project. Interest on this amount accrues at 6% per annum until settlement, due the day after capital injection completion.

3. Shareholder loan: To cover remaining funding needs of RMB 104.18 million, Huichen Jingyue will provide a shareholder loan of RMB 26.04 million, while Xingsheng Huashang will lend RMB 78.13 million.

Aggregate outlay and funding Ling Yue Services’ total commitment equals RMB 88.78 million (capital injection + reimbursement + loan), to be financed from internal resources. The Target Company will be accounted for as an associate and will not be consolidated.

Project profile The Target Company holds a residential land parcel in Group 3, Gemo Community, Dongsheng Street, Shuangliu District, Chengdu, with a site area of 19,134.49 sq m and planned GFA of 38,268 sq m. Key permits (land use rights, planning and construction) are in place, and construction commenced in October 2025.

Financial snapshot of Target Company • Establishment: 17 September 2025 • Unaudited net loss (17 Sep–31 Dec 2025): RMB 0.14 million • Unaudited net assets at 31 Dec 2025: RMB 9.86 million

Strategic rationale Management cites evolving demand for “quality homes” and selective opportunities in well-positioned, manageable-scale projects amid China’s real-estate adjustment as drivers for the investment. The move aims to strengthen the group’s presence in Chengdu’s high-end residential market and leverage its property services expertise.

Regulatory classification The combined size of the capital injection, reimbursement and loan exceeds 5% but is below 25% under HKEX Listing Rule 14.07, making the deal a discloseable transaction requiring announcement but not shareholder approval.