China Information Technology Development Limited (CITD, 08178) disclosed that it entered into a Disposal Agreement on 29 December 2025, resulting in the sale of its full interest in a subsidiary (the “Target Company”). According to the announcement dated 2 February 2026, the deal was prompted by CITD’s emphasis on reallocating resources to its main businesses and mitigating potential future losses from the Target Company’s holdings in GEGHL.

At the time of the Disposal Agreement, the Target Company held 1,600,000 GEGHL shares, worth approximately HK$5.4 million, with a net assets value of around HK$5,794,000. CITD highlighted that GEGHL’s share price had remained soft and its trading volume was mostly low, contributing to the decision to divest. The final consideration of HK$4 million represents a discount of approximately 30.96% against the Target Company’s net assets value.

The announcement noted that the market capitalization of GEGHL had declined significantly over the preceding year by about 85%, and there was decreased investor appetite for the Target Company’s position. CITD considered this an opportune moment to exit and reinvest capital in its core operations, citing a foreseeable downward trend in GEGHL’s share price and limited market liquidity as motivating factors. The board views the one-off loss as acceptable given the avoidance of ongoing losses and the ability to refocus resources. All other details in the earlier disclosure remain unchanged.