Hong Kong-listed Wang On Group (WOG) and its 72.71%-owned subsidiary Wai Yuen Tong Medicine (WYT) have entered into a Sale and Purchase Agreement to divest 100% of Guanzun (Shenzhen) Trade Development Co., Ltd., the registered owner of an industrial property in Shenzhen’s Pingshan District. The purchaser, Shenzhen Hongxin Industrial Development Co., Ltd., will pay total cash consideration of RMB99.80 million (approximately HK$115.44 million).
The consideration will be settled in two tranches: RMB10.00 million (HK$11.56 million) within five business days of signing, followed by RMB89.80 million (HK$103.88 million) within 10 business days after shareholder approvals—or no later than three months post-signing—subject to the vendor’s completion of specified pre-completion obligations. Upon share-transfer registration, RMB3.00 million (HK$3.47 million) will be retained in escrow for two years as a warranty reserve.
Transaction pricing references include: • Unaudited net asset value of the target as of 30 June 2026: RMB46.30 million (HK$53.56 million). • Independent preliminary valuation of the underlying property (31 May 2026): RMB99.30 million (HK$114.86 million). • Adjusted net asset value after revaluation: RMB99.00 million (HK$114.52 million).
Financially, both groups anticipate recording an after-expense gain of approximately HK$46.54 million, derived from estimated net proceeds of HK$100.10 million versus the target’s HK$53.56 million net asset value. Post-completion, the target will cease to be consolidated by either group. WYT intends to deploy the cash inflow for general working capital and operational needs.
Given transaction size—where the highest applicable percentage ratio exceeds 25% but is below 75%—the disposal constitutes a major transaction for both WOG and WYT under Hong Kong Listing Rules. WOG will seek shareholder approval at a special general meeting; a circular is slated for dispatch by 24 August 2026. WYT has obtained written approval from its 72.71% parent Rich Time Strategy Limited, satisfying shareholder consent requirements and will similarly issue a circular by 24 August 2026, subject to a waiver for extended despatch.
Completion remains conditional on fulfilment of pre-completion obligations and shareholder approvals. Either party may terminate the agreement if conditions are unmet within three months, triggering refund or forfeiture provisions. WYT has provided a guarantee of up to RMB100 million (HK$115.68 million) for the vendor’s obligations.
The Shenzhen property spans 11,026.83 sq.m. and comprises one factory and two dormitory buildings. The transaction aligns with both boards’ strategies to optimize asset portfolios and bolster liquidity. Shareholders and investors are advised that completion is not assured until all conditions are met.