On December 9, 2025 (after trading hours), the seller (a wholly-owned subsidiary of LAI SUN DEV (00488)) entered into a sale and purchase agreement with the buyer, Jasmine Investment Development IV Limited, to dispose of all issued shares of Surearn Profits, free from any encumbrances, along with all associated rights and interests.

As of the announcement date, Surearn Profits holds a 50% legal and beneficial interest in the entire issued share capital of Wallida, which in turn owns full legal and beneficial rights to a property and its related assets and liabilities. The seller will facilitate liquidation and distribute the property proportionally based on Wallida’s shareholding. The seller’s 50% interest in the property is referred to as the SPL Property.

Following the distribution and prior to completion, the SPL Property and other assets of Wallida—including tenant deposits and deposits paid to the property manager for the SPL Property—will be allocated and transferred to Surearn Profits. Upon completion, the seller will no longer hold any interest in the SPL Property or Surearn Profits.

The consideration will be the sum of the agreed property value (HKD 3.498 billion) and the net current assets of Surearn Profits at completion, as determined under the agreement. The proceeds are expected to strengthen the financial positions of the Lai Sun Garment Group and LAI SUN DEV Group by increasing cash inflows and reducing debt, with an estimated net cash inflow of approximately HKD 2.4 billion.

As of July 31, 2025, the Lai Sun Garment Group and LAI SUN DEV Group reported net current liabilities of HKD 5.42 billion and HKD 4.506 billion, respectively. Considering the successful refinancing of the Cheung Sha Wan Plaza syndicated loan at the LAI SUN DEV Group level on September 30, 2025, and assuming the sale’s completion, both groups are projected to shift from net current liabilities to net current assets.