Easyknit International Holdings Ltd. has agreed to sell its wholly owned subsidiary Success Active Ltd.—the sole owner of “The Quad” student hostel in Hung Hom—to Quantum Living Accommodation Ltd. for HK$528.50 million plus/minus an adjusted net asset value to be determined at completion.

The deal structure: • Asset: 100% equity interest in Success Active, which owns “The Quad”, a 25-storey, 184-room student accommodation property with 41,875 sq ft of gross floor area and 100 % occupancy. • Initial price: HK$528.50 million, set at a 0.85 % premium to the HK$524.00 million independent valuation as of 31 July 2026. • Adjustment: Final consideration equals the initial price plus or minus Success Active’s adjusted net asset value (excluding the property’s book value) on the completion date. • Deposit: HK$52.85 million (10 % of the agreed property value) already placed. • Debt settlement: On completion the buyer will directly repay Success Active’s outstanding bank loan of about HK$345.00 million. • Long-stop date: 31 Dec 2026; completion expected 12 business days after satisfaction of conditions precedent, including rectification works, capitalisation of inter-company balances and shareholder approval.

Financial impact: • Easyknit forecasts a disposal loss of roughly HK$0.50 million after transaction costs. • Net proceeds estimated at HK$165.80 million after loan repayment and expenses. • Proceeds allocation: 30.2 % for expanding the secured-loan business, 60.3 % for investments and/or a potential special dividend, and 9.5 % for general working capital. • Pro-forma analysis (31 Mar 2026): total assets fall to HK$1.94 billion, total liabilities to HK$0.65 billion, while bank balances rise by HK$165.70 million.

Regulatory status: • The disposal is classified as a “very substantial disposal” under Chapter 14 of the Listing Rules, exceeding the 75 % size threshold. • Approval from independent shareholders is required. A special general meeting is scheduled for 22 October 2026 in Hong Kong. Major shareholders Sea Rejoice Ltd. and Magical Profits Ltd., holding a combined 52.86 % stake, have undertaken to vote in favour.

Strategic rationale: • Management views current market conditions as an opportunity to monetise the property, reduce debt and redeploy capital. The sale will release resources tied up in a single asset, lower carrying costs and enhance liquidity for future developments and loan-financing expansion.