Sincere Watch (Hong Kong) Limited (444) has disclosed a transaction involving the purchase of 51% equity interests in Nantong Rongyu Energy Technology Co., Ltd. (the “Target Company”) through its wholly owned subsidiary Beijing Mai Li Wei Er Technology Co., Ltd. The agreed consideration is RMB1,000,000 (approximately HK$1,120,000), which will be settled by issuing a 12-month promissory note bearing 5% annual interest.

The Target Company is principally engaged in natural gas and refined oil business. According to unaudited figures, it recorded total assets of approximately RMB4,002,000, with a net profit after taxation of about RMB1,392,000 for the year ended 31 December 2025. Upon completion of the transaction, the Target Company will become an indirect non-wholly owned subsidiary of Sincere Watch (Hong Kong) Limited, and its financial results will be consolidated into the group’s accounts.

Under the terms of the equity transfer, the purchaser is entitled to early redemption of the promissory note without penalty, while the vendor may transfer the note to other parties with prior written notice. The company views this acquisition as an opportunity to diversify its core business, given current challenges in the luxury goods market and the increasing emphasis on clean energy.

The acquisition constitutes a discloseable transaction under Chapter 14 of the Listing Rules, as the highest applicable percentage ratio exceeds 5% but is less than 25%. Meanwhile, trading in the company’s shares on the Stock Exchange has been suspended since 2 July 2025 and remains suspended until further notice, according to prior announcements regarding the company’s share dealings. Shareholders and potential investors are advised to exercise caution when dealing in the securities of the company.