On 13 November 2025, Seven Elements Investment Holdings Limited (stock code: 1660) (“Seven Elements”) entered into a sale and purchase agreement with two vendors to acquire the entire issued share capital of Tung Wui Securities Company Limited (“Tung Wui”), which holds a Type 1 (dealing in securities) license under the Securities and Futures Ordinance. The proposed transaction involves purchasing approximately 99.999995% and 0.000005% equity interests from two responsible officers of Tung Wui.

According to the announcement, the total consideration will not exceed HK$20 million, calculated as HK$1 million plus Tung Wui’s unaudited net asset value on completion and agreed expenses (capped at HK$1 million). A refundable deposit of HK$1 million is payable upon signing, with the balance due at completion. As of 30 June 2025, Tung Wui had an unaudited net asset value of approximately HK$5.3 million.

Completion remains conditional on regulatory approvals, including obtaining clearance from the Securities and Futures Commission and maintaining licensed responsible officers and personnel. Should any condition fail to be met by the long-stop date, the agreement will lapse, and the deposit (less agreed expenses) will be refunded to Seven Elements. Upon successful completion, Tung Wui will become a wholly owned subsidiary of Seven Elements.

Seven Elements cited the slowdown in the real estate market in Hong Kong and mainland China as a key driver for diversification into financial services. The transaction does not constitute a disclosable transaction under Chapter 14 of the Listing Rules, as all applicable percentage ratios fall below 5%. Shareholders and potential investors are advised to exercise caution when dealing in the company’s securities, given that completion of the acquisition remains subject to listed conditions.