S. DRAGON (08493) intends to sell all the equity of Long Huang Holdings.

S. DRAGON (08493) announced that on August 13, 2026 (after trading hours), the company entered into a memorandum of understanding with Mr. Yang Weijie (the buyer), whereby the company intends to sell all the shares of its wholly-owned subsidiary, Longhuang Holdings Limited (the target company), to the buyer (the proposed transaction). The consideration for the proposed transaction is HKD 1, and the commercial terms of the proposed transaction will be further negotiated in good faith by the parties and finalized in a legally binding formal agreement (the definitive agreement). According to the memorandum of understanding, the company must grant the buyer exclusive rights to discuss, negotiate, and finalize the definitive agreement within sixty days from the date of the memorandum of understanding (or such longer period as the parties may agree in writing) (the exclusivity period). During this period, the buyer has the right to conduct legal, financial, commercial, and compliance due diligence on the target company. The target company is a limited company registered in the British Virgin Islands. As of the date of this announcement, the company is the legal and beneficial owner of all issued share capital of the target company. The buyer is a businessman who has previously been engaged in the real estate industry in China. The Directors believe that the proposed transaction presents a strategic opportunity for the group to divest long-standing underperforming assets that have been a drag on the company, thereby improving the group's financial position and allowing for more resources to be allocated to the development of new restaurant businesses. The proposed transaction (if completed) will allow the group to align with its long-term business development strategies, enabling sustainable business growth and enhancing long-term shareholder value.