China Ever Grand Financial Leasing Group Co., Ltd. (Stock Code: 379) announced on 3 February 2026 that its wholly-owned subsidiary, Harvest Castle Holdings Limited, entered into a disposal agreement to sell its entire stake in China Ever Grand Capital Group Limited (the Disposal Company) for RMB70 million. The Disposal Company indirectly holds approximately 51.39% in Beijing Ever Grand International Financial Leasing Co. Limited (BJEG), which operates a financial leasing business in the PRC.

Under the terms of the agreement, key conditions include the receipt of shareholder approval at an Extraordinary General Meeting (EGM), the settlement of deposits and installments, and fulfillment of various regulatory requirements. If completed, the Group will cease to hold any equity interest in the Disposal Company, and BJEG will no longer be recognized as an equity investment in the Company’s financial statements.

The unaudited net asset value of the Disposal Group attributable to the Company was around HK$21.9 million as at 30 June 2025. The Company estimates a gain of approximately HK$55 million upon completion. The principal reasons cited for the Disposal are the Disposal Group’s ongoing losses due to challenging market conditions and disputes that have hindered operational management.

The Board expects to use the net proceeds of around HK$77.3 million primarily to expand its existing businesses in loan financing, securities investment, and distribution of medical, health, hygiene, and pet products, as well as to bolster manufacturing in the PRC. A circular containing further details about the transaction and EGM arrangements is scheduled to be dispatched on or before 6 March 2026. Shareholders are advised that the Disposal remains subject to final approval and may or may not proceed.