CHI ASIA VALLEY Group (00063) announced that on January 27, 2026, Chi Asia Valley (the Company's subsidiary, acting as the investor), Mr. Liu Hongsheng, Youwei, and Zhongshan Huihai entered into a capital increase agreement. Chi Asia Valley will subscribe for Youwei's new registered capital of RMB 77.647 million (approximately HK$86.274 million) in cash, representing 66% of Youwei's enlarged total share capital after the capital increase.

Upon completion of the capital increase, the Company will indirectly hold a 66% equity interest in Youwei through Chi Asia Valley. Mr. Liu and Zhongshan Huihai have guaranteed that prior to the completion of the capital increase, Youwei will have completed the divestment of all its non-core assets, liabilities, and businesses, with the exception of an industrial plot of land located at No. 27 Cuilan Road, Cuiheng New District, Zhongshan City, Guangdong Province, China.

Owning a land parcel will transform the Company's role into that of a developer and long-term asset holder. This shift enables the Company to move beyond earning management and leasing fees towards capturing development profits, rental income, and long-term capital appreciation.

High-value tangible assets will also enhance the Company's credit profile and borrowing capacity. Furthermore, alongside its fee-based business, the Company can secure a long-term source of rental income derived from the owned asset.

Given the Company's existing management expertise, it can apply this knowledge to the management and development of this new asset.