JIYI HOLD-NEW (01495) announced that on December 31, 2025, the company entered into a sale and purchase agreement with Zhongyi International Holdings Limited (the Buyer) to sell the entire issued share capital of JIYI Investment Limited for a consideration of HK$10,000.

The target company and its subsidiaries were primarily engaged in the sale of building materials through retail channels; however, having generated minimal profits in certain years and sustained continuous losses, they ceased operations effective January 1, 2025.

The decision considered the target company's deteriorating financial condition and constrained business prospects; the Group's financial resources were limited due to the financial support provided to the target company, and the disposal is expected to streamline the Group's structure by divesting an underperforming subsidiary, thereby alleviating the financial burden associated with maintaining a subsidiary with negative net assets.

The Group anticipates recognizing a gain from the disposal.

Furthermore, the transaction will enable management to concentrate resources on developing the Group's core business by divesting the non-performing subsidiary and reduce potential financial burdens, including ongoing financial support, administrative expenses, and management time, arising from maintaining a subsidiary with negative net assets.

The directors, including the independent non-executive directors, consider the terms of the disposal to be fair and reasonable and in the overall interests of the company and its shareholders.