Wai Yuen Tong Medicine Holdings (00897) has agreed to dispose of its entire interest in Guanzun (Shenzhen) Trade Development Co., Ltd., the owner of an industrial complex in Shenzhen’s Pingshan District, to Shenzhen Hongxin Industrial Development for RMB99.80 million (approximately HK$115.44 million).

The asset package includes a 11,026.83-sq.m land parcel and three six-storey buildings (one factory and two dormitories) with a combined gross floor area of 19,475.01 sq.m. An independent valuer assessed the property’s market value at RMB99.30 million as of 30 June 2026, more than double its carrying value of RMB46.62 million.

Payment will be made in two tranches: a RMB10.00 million deposit within five business days of signing, followed by RMB89.80 million within ten business days of shareholder approvals (received via written consent from 72.71% shareholder Rich Time Strategy) and completion of specified pre-closing conditions. RMB3.00 million of the consideration will be held in a supervised account for two years as retention.

Wai Yuen Tong expects to realise net proceeds of about HK$100.10 million, translating into an estimated disposal gain of HK$46.49 million and a corresponding increase in total and net assets of the same amount, subject to audit. Proceeds are earmarked 20% for daily retail and TCM clinic operations, 40% for e-commerce expansion, and 40% for marketing and advertising.

The Company has provided a guarantee of up to RMB100.00 million to the purchaser for the vendor’s obligations. Upon completion, the target company will cease to be a subsidiary, and its results will no longer consolidate into the Group’s financial statements.