CASABLANCA (02223) subsidiary intends to sell 100% equity of Junyu International Investment for HK$50 million

CASABLANCA (02223) announces that on 6 November 2026 (after trading hours), the seller, Casablanca Home Holdings Limited (a direct wholly-owned subsidiary of the Company), and the buyer, Asset International Holdings Limited, entered into a share purchase agreement, pursuant to which the seller has conditionally agreed to sell, and the buyer has conditionally agreed to purchase, the entire issued share capital of the target company, Junyu International Investment Limited, for a consideration of HK$50 million. The target company is a company incorporated in the British Virgin Islands. As at the date of this announcement, the target company is a direct wholly-owned subsidiary of the seller and is principally engaged in investment holding. CASABLANCA International is a company incorporated in Hong Kong. As at the date of this announcement, CASABLANCA International is a direct wholly-owned subsidiary of the target company. CASABLANCA International directly holds the properties. The properties are all directly owned by CASABLANCA International. Property A has a gross floor area of approximately 2,308.18 square meters (excluding parking spaces) and comprises a mix of office and warehouse space. Property B is a warehouse with a gross floor area of approximately 285.39 square meters. The properties are all located at Yan Hing Centre, 9-13 Wong Chuk Yeung Street, Fo Tan, New Territories, Hong Kong. The Company and CASABLANCA International (as landlord) entered into two tenancy agreements both dated 2 January 2026 (the Original Tenancy Agreements) in respect of the entire 5th floor and Workshop No. 1 on the 7th floor of Yan Hing Centre, 9-13 Wong Chuk Yeung Street, Fo Tan, New Territories, Hong Kong, for a term of one year from 1 January 2026 to 31 December 2026 (both dates inclusive). As the Original Tenancy Agreements will expire on 31 December 2026, on 6 November 2026, the Board considered and passed a resolution in relation to the renewal of the Original Tenancy Agreements (the Tenancy Renewal) for a term of 3 years from 1 January 2027 to 31 December 2029 (the Renewal Tenancy Agreements), with annual rent and terms substantially the same as those of the Original Tenancy Agreements. Having considered the current property market conditions in Hong Kong, the Board is of the view that the Disposal presents a good opportunity for the Group to realize the value of the properties and release the capital tied up in the properties, thereby enhancing the Group's liquidity and financial flexibility. The net proceeds from the Disposal will be used as general working capital and for business development of the Group. Pursuant to the Renewal Tenancy Agreements, the Group will continue to use the properties for office and warehouse operations after completion. This enables the Group to avoid the costs and potential business disruption arising from relocation while maintaining the continuity of its business operations.