C.BANNER (01028) announced that on September 29, 2025, the company entered into a sale and purchase agreement with buyer Glens Hill Limited, whereby the company agreed to sell and the buyer agreed to purchase the entire equity interest in the target company Toy Kingdom Hong Kong Limited, which holds the group's entire interest in the toy retail business. Upon completion, the company will no longer hold any interest in the target group or the toy retail business.

Following the group's divestment of Hamleys Global Holdings Limited and its subsidiaries in July 2019, the group has been exclusively operating the toy retail business in China under a franchise agreement. This business has limited importance to the group's revenue, accounting for less than 6% of the group's revenue annually from 2020 to 2024.

The toy retail business was in a loss-making position in 2021 and 2022, while its profitability in 2023 and 2024 (after accounting for expenses incurred at the company level to support the toy retail business operations) continued to fluctuate around the break-even point, contributing minimally to the group's profits. Furthermore, given the current macroeconomic environment, the development prospects for the toy retail business are not optimistic.

As previously disclosed in the company's circular dated June 30, 2020, considering the limited importance of the toy retail business to the group's revenue, the continued losses in the toy retail business, and the group's intention to focus on its footwear retail and wholesale business (particularly its online sales channels), the board of directors planned to dispose of or terminate the toy retail business in the foreseeable future.

The disposal will alleviate the group's financial burden related to the target group's net debt position by approximately RMB 6.5 million and enhance the group's overall financial position. The directors believe that the disposal will enable the company to focus on its core footwear business, thereby optimizing operational efficiency and supporting the group's long-term strategic objectives.