Rykadan Capital Limited (2288) announced a proposed disposal of its 20% equity interest in Vibrant Colour Holdings Limited (the “PropCo”) and the related shareholder’s loan. Under the agreement signed on 23 January 2026, the vendor (a direct wholly-owned subsidiary of Rykadan Capital Limited) and the purchaser (beneficially owned 50% each by the Company’s Chairman and Chief Executive Officer, Mr. Chan, and his spouse, Mrs. Chan) agreed that the consideration will be the sum of the outstanding shareholder’s loan at completion and 20% of the net asset value (NAV) of the PropCo as of the completion date.

Based on the PropCo’s consolidated management accounts as of 30 September 2025 and assuming no material changes by completion, the consideration is estimated at around HK$15.07 million. After completion, Rykadan Capital Limited is expected to no longer hold any interest in the PropCo, and the group anticipates recognizing a gain of approximately HK$150,000 from this disposal. The company intends to use the net proceeds of about HK$14.62 million as general working capital.

Since some of the applicable Listing Rules percentage ratios exceed 5% but are below 25%, the transaction is classified as a discloseable one. It is also deemed a connected transaction under Chapter 14A of the Listing Rules. The disposal will be subject to approval by independent shareholders at an extraordinary general meeting, with a circular containing further details expected to be issued on or before 13 February 2026.