Wai Yuen Tong (HKEX: 00897) and Wang On Group (HKEX: 01222) have jointly announced a property sale agreement.

On July 16, 2026, the seller, an indirect wholly-owned subsidiary of Wai Yuen Tong, entered into a sale and purchase agreement with the buyer, Shenzhen Hongqing Industrial Development.

The seller conditionally agreed to sell, and the buyer conditionally agreed to purchase, the entire issued share capital of the target company, Guan Zun (Shenzhen) Commercial Trade Development, which holds the property.

The total consideration for the sale of the target company is 99.8 million Chinese yuan, equivalent to approximately 115 million Hong Kong dollars.

Upon completion of the transaction, neither the Wang On Group nor the Wai Yuen Tong Group will hold any shares in the target company.

The target company is the registered, legal, and beneficial owner of the property.

The property comprises a land parcel with a site area of about 11,026.83 square meters, identified as plot number G12204-0252, along with one factory building and two dormitory buildings.

It is located at No. 6, Road 1, Da Industrial Zone, Pingshan Street, Pingshan District, Shenzhen.

According to an independent valuer's preliminary indicative assessment, the property was valued at approximately 99.3 million yuan, or about 114.86 million Hong Kong dollars, as of May 31, 2026.

The property is included within the property, plant, and equipment assets of both the Wai Yuen Tong Group and the Wang On Group.

The boards of directors for both Wang On and Wai Yuen Tong believe the sale will facilitate a more effective allocation of resources for their respective groups.

After considering the current financial positions and business operations of both groups, the boards view the sale as a favorable opportunity to realize the property's value at a reasonable price.

The proceeds from the sale are expected to enhance the financial standing of both groups and provide additional general working capital.