Haiqi Group: Significant obstacles in the progress of major asset restructuring, uncertainties remain in implementation and completion.

Haiqiao Group announced that it plans to acquire the controlling rights of Hainan Travel Duty-Free after the divestment of the Huating project by paying cash and/or assets. The original restructuring plan underwent significant adjustments, and the company has been monitoring the situation since the adjustments. Due to fierce competition in the domestic duty-free market and slowing consumer demand, it is expected that the performance of the target company excluding the Huating project will significantly decline by 2025. There are obstacles to advancing this restructuring, and there is significant uncertainty as to whether the transaction can ultimately be completed, including negotiations with the counterparty, approval, and approval, etc. The implementation time is also uncertain.