Hong Kong – 12 June 2026 – Yuk Wing Group Holdings Limited announced that its wholly owned subsidiary, Top Standard Limited, has signed a Sale and Purchase Agreement to buy 65% of Anhui Runsheng Electric Power Technology Co., Ltd. for RMB37.50 million (approximately HK$43.40 million).

The cash consideration will be settled in two tranches: RMB17.50 million on completion and a deferred RMB20.00 million within 12 months, interest-free for the first six months and bearing 2.5% annual interest thereafter. Funding will come from internal resources or potential future fund-raising; no specific plans have been finalised.

Upon completion, Yuk Wing Group will consolidate Anhui Runsheng’s results, making it an indirect non-wholly owned subsidiary. The agreement also grants Top Standard a 12-month call option to purchase the remaining 35% equity for RMB20.10 million (approximately HK$23.30 million) at a nominal premium of RMB2.00.

The purchase price is underpinned by an independent valuation from Peak Vision Appraisals, which assessed 100% of Anhui Runsheng at RMB57.60 million (HK$66.70 million) as of 30 April 2026 using an asset-based approach focused on the company’s investment properties in Hefei, Anhui province. The site spans 19,972 sq m and comprises seven industrial buildings with a combined gross floor area of about 30,072 sq m.

Anhui Runsheng, established in 2015, provides warehouse services and property leasing. Unaudited financials show revenue of RMB1.46 million in 2024 and RMB2.36 million in 2025, with net losses of RMB0.71 million and RMB0.54 million respectively. As of 31 December 2025, total assets stood at RMB73.70 million and net assets at RMB5.20 million. Approximately one-third of its property is currently leased, generating RMB2.36 million in rental income last year; remaining space is vacant.

Strategic Rationale: Yuk Wing Group, a leading manufacturer of down-the-hole rock-drilling tools, plans to use the Hefei facilities as a production and logistics hub to support its expanding PRC business, enhance supply-chain efficiency, reduce long-term rental costs, and potentially generate ancillary rental income.

Regulatory Status: The deal constitutes a major transaction under Hong Kong Listing Rules (highest percentage ratio >25% but <100%) and requires shareholder approval at an extraordinary general meeting (EGM). A circular, including pro forma financials of the enlarged group, is expected by 7 July 2026. Completion is subject to customary conditions, including due diligence, regulatory consents, release of a RMB7.60 million guarantee, and shareholder approval.

Yuk Wing Group cautions investors that the transaction may or may not proceed pending satisfaction of all conditions precedent.