YANGTZEKIANG (00294) subsidiary intends to sell the entire equity interest in Excellent Weaving (Guangzhou) Company Limited for HK$42 million

YANGTZEKIANG (00294) announces that on 15 September 2026, the vendor Hong Kong Weaving Limited (an indirectly wholly-owned subsidiary of the Company) and the purchaser Guangzhou Jinglue Supply Chain Management Limited (an independent third party) entered into an equity transfer letter of intent in relation to the disposal. Pursuant to the equity transfer letter of intent, the vendor agrees to sell, and the purchaser agrees to acquire, the entire equity interest in the target company Excellent Weaving (Guangzhou) Company Limited for a consideration of HK$42 million. As at the date of the equity transfer letter of intent and prior to completion of the transaction, the target company is an indirectly wholly-owned subsidiary of the Company. Upon completion of the disposal, the target company will cease to be a subsidiary of the Company. The target company operates the Group's weaving factory in Panyu and holds the relevant assets, including land and the buildings thereon, for use as factory premises and staff dormitories. As the operating scale of the Panyu factory has been shrinking year by year, the utilisation rate of the factory premises is relatively low, and it is currently mainly used as a sample room and an auxiliary workplace for follow-up work, with no significant production activities being carried out. The Board considers that the disposal provides a good opportunity for the Group to realise the value of the target company and its underlying assets, and that the proceeds from the disposal will help enhance the Group's cash flow and financial flexibility.