KING'S FLAIR INTERNATIONAL (HOLDINGS) LIMITED has announced a significant transaction involving one of its subsidiaries.

On June 5, 2026, the seller, King’s Flair Marketing Limited, a wholly-owned indirect subsidiary of KING'S FLAIR, entered into a sale agreement with the buyer, Eagle Action Limited.

The agreement stipulates that the seller will conditionally sell, and the buyer will conditionally purchase, all the issued share capital of the target company, Golden Well Ventures Limited, along with all amounts owed to the seller, collectively known as the sales debt.

The total consideration for this transaction is HK$92 million, which will be settled in cash.

The properties involved in this sale were originally acquired by the group in 2021 and consist of the entire 14th floor of Tower C, Harbour View Mansion, at 8 Watson Road, Hong Kong, and a designated parking space at the same location.

These assets were initially recorded on the group's financial statements as property, plant, and equipment, with the intention of serving as the group's new headquarters upon the expiry of the existing lease.

However, due to significant shifts in the commercial landscape and heightened geopolitical tensions, the group's business outlook has become uncertain.

Consequently, the group has reassessed the intended use of these properties as its new headquarters and has reclassified them as investment properties for rental purposes.

This strategic reallocation aims to generate a stable stream of recurring rental income for the group.

The board of directors believes this disposal presents a valuable opportunity for the group to realize its investment in these properties and to recover cash resources.

The proceeds will be used to reduce the group's liabilities, which is expected to lower its financing costs and strengthen its financial position amid the persistently challenging business environment.