KINGWORLD (01110) announced that on January 22, 2026, its wholly-owned subsidiary, Kingworld (BVI), entered into a memorandum of understanding with the proposed seller and a guarantor concerning the proposed acquisition. The consideration is expected to be settled in cash. The guarantor has agreed to provide a guarantee for the proposed seller's fulfillment of its obligations under the memorandum. Subject to the execution of a sale and purchase agreement and any adjustment mechanisms stipulated therein, the total consideration will comprise: (i) a base purchase price of HK$66.4368 million, of which HK$41.5 million relates to the target company's relevant business and production equipment (excluding vehicles), and HK$24.9368 million relates to the property estate; (ii) the net book value of the target company's equipment (excluding any vehicles) at the time of completion; and (iii) the net working capital (defined as the sum of accounts receivable and inventory minus accounts payable) at completion, subject to post-completion adjustments based on audited accounts prepared in accordance with Hong Kong Financial Reporting Standards. Within five business days of signing the memorandum, Kingworld (BVI) will pay a deposit of approximately HK$3.3218 million to the proposed seller. The announcement stated that the target company is a corporation registered in Hong Kong, primarily engaged in the production and sales of pharmaceutical products, operating from the aforementioned property estate. The board of directors believes that if the proposed acquisition is successfully implemented, it will enable the Group to expand its footprint within Hong Kong's pharmaceutical sector, acquire valuable manufacturing assets including the property estate, and facilitate the development of the Group's domestic and international business through synergies in product distribution and operational scale.