Redco Properties Group Limited has disclosed that joint and several receiver Mr. Lai Wing Lun intends to sell 48.00 million shares—equivalent to 24% of the issued capital—of subsidiary Redco Healthy Living Company Limited to lender China Billion International Limited for HK$45.12 million. The consideration will be settled through a partial set-off against Redco Properties’ outstanding loan facility, which remains in default since 31 December 2025.

The receiver’s notice stipulates that by close of business on 26 May 2026 the Group must either: 1) secure a buyer willing to pay at least HK$45.12 million for the same stake, 2) repay the entire outstanding facility, or 3) raise objections with reasonable grounds.

Failing these conditions, the receiver will execute the sale without further notice. Redco Properties has sought leniency but the lender rejected any deferral on 22 May 2026. Management acknowledges insufficient liquidity to meet the HK$45.12 million repayment, and therefore anticipates the transaction will proceed.

After the planned disposal, 51% of Redco Healthy’s shares will remain under receivership. The Group cautions that any further sale of these pledged shares could trigger a deconsolidation of Redco Healthy from its consolidated financial statements.

The Board is assessing the legal, financial and operational ramifications of the receiver’s actions and will issue further updates in line with Hong Kong Listing Rules. Shareholders and investors are advised to exercise caution when dealing in Redco Properties’ securities.