K2 F&B announced that on February 6, 2026, the seller, CK Chu Holdings Pte Ltd, an indirect wholly-owned subsidiary of the company, entered into a sale agreement with the buyer, Aik Chuan Construction Pte Ltd. Under the agreement, the seller conditionally agreed to sell, and the buyer conditionally agreed to purchase the property, which includes nine units located at People’s Park Centre in Singapore, for a consideration of S$28 million, equivalent to approximately HK$172 million, excluding applicable goods and services tax. Following the execution of the sale agreement, on the same date, the buyer and the seller concurrently entered into a lease agreement. Under this agreement, the buyer, as the landlord, agreed to lease the property back to the seller, as the tenant, upon completion of the sale. The monthly rent is set at S$75,000, equivalent to approximately HK$460,000, excluding applicable goods and services tax, which will be borne by the seller. The initial lease term is three years, commencing the day after the completion date. The seller has the option to renew the lease for an additional three years at the prevailing market rental rate, subject to a maximum increase of 10% over the rent payable during the initial term. The group originally acquired the property in 2020 for approximately S$22.2 million, equivalent to about HK$136 million, with the acquisition primarily funded by bank borrowings. As mentioned, the property is currently operated and managed by the group as an air-conditioned food centre under its shop management and leasing business. The group also leases certain units of the property to third parties. After considering the current property market conditions and the gains to be realized from the disposal, the sale presents a favorable opportunity to monetize the property's value. The board of directors believes that the disposal will enable the group to realize its investment in the property. The net proceeds are intended to be used to repay the group's bank loans, thereby reducing its debt and financing costs, and alleviating liquidity pressure.