CHINA WANTIAN Holdings Limited (01854) announced that on January 9, 2026, the company (as the seller) entered into a sale and purchase agreement with the buyer, Li Rongshen (an independent third party). Under the agreement, the company conditionally agreed to sell, and the buyer conditionally agreed to purchase, the sale shares, representing the entire issued share capital of the target company, Youyu Limited. The target company, through its subsidiary A and subsidiary B, indirectly holds the entire interests in Property A and Property B, respectively, for a consideration of HK$46.5 million. According to the sale and purchase agreement, a condition for completion is that Subsidiary A must enter into a leaseback agreement with the company or a subsidiary designated by the company on or before the completion date. This agreement will lease back Property A to the group for a term of one year commencing from the completion date, with a total monthly rent of HK$120,000. After considering the current market conditions and recent market prices for industrial sector properties in Hong Kong; the nature and quality of the properties (including their location, age, and condition); the overall economic situation in Hong Kong; the fact that holding the properties is not crucial to the group's long-term development strategy; and the leaseback arrangement under the leaseback agreement, the Board believes that the disposal will not have a significant adverse impact on the business operations of the group. The Directors consider that the disposal presents a favorable opportunity for the group to realize the value of the properties and improve its cash flow. It will effectively assist the group in utilizing the proceeds from the disposal to strengthen its financial position. By divesting the properties, the group will transition towards a lighter asset model, thereby enhancing its operational flexibility and agility in responding to market opportunities. This transition allows the group to allocate resources more efficiently and focus on high-growth areas, free from the burden of property ownership and all associated maintenance costs. In particular, the cash generated from the disposal will enable the group to consolidate the development of its catering business in the Greater Bay Area, an action that aligns with the strategic initiatives outlined in the company's latest interim report. Furthermore, the leaseback arrangement under the leaseback agreement ensures the seamless continuation of the group's food ingredient supply operations in Hong Kong. By leasing back Property A, the group can maintain its existing business operations in Hong Kong without incurring any relocation costs for its local business activities.