SUNWAH KINGSWAY (00188) announced that on October 31, 2025, its wholly-owned subsidiary, SW Kingsway Capital Group Limited, as the seller, entered into a sale and purchase agreement with the buyer, KCG Capital (an associate of the company), for the disposal of 15,000 sale shares, representing 30% of KCG Capital's issued share capital.

Under the agreement, the seller agreed to sell, and the buyer agreed to repurchase the sale shares via a share buyback transaction for a consideration of HK$16.1 million (excluding transaction costs). Upon completion of the sale, the company will no longer hold any equity in KCG Capital, and KCG Capital will cease to be classified as an associate.

Prior to the disposal, the group held a 30% stake in KCG Capital but had not participated in its management or strategic decisions. KCG Capital did not distribute any dividends in previous fiscal years.

The sale will provide the group with immediate liquidity, improving its cash position and optimizing its asset portfolio structure. The group plans to use the proceeds as general working capital and cash reserves to explore potential future investment opportunities.

The consideration was determined through fair negotiations between the parties, taking into account KCG Capital's latest unaudited net asset value and current market conditions. The HK$16.1 million proceeds received upon completion will strengthen the company's general working capital base.