ZHUGUANG HOLD (01176) announced that on November 28, 2025 (after trading hours), its wholly-owned subsidiary, Heida Limited, entered into a sale and purchase agreement with Rongde Investment Limited. Under the agreement, the seller conditionally agreed to sell approximately 29.50% of the issued shares of the target company, SILVER GRANT INTERNATIONAL HOLDINGS LIMITED (00171), for a consideration of HK$81.5868 million. The consideration will be settled by offsetting an outstanding loan, which will be fully extinguished upon completion of the transaction. Post-completion, the group will no longer hold any equity in the target company.

SILVER GRANT (00171), incorporated in Hong Kong and listed on the Main Board of the Hong Kong Stock Exchange, is an investment holding company primarily engaged in property leasing, investments, and new energy investments and operations. Given the group's substantial 29.50% stake in SILVER GRANT and the relatively low trading liquidity of the target company's shares, an orderly disposal of the entire investment through the open market was deemed impractical. A phased sale in the open market would not only prolong the disposal period and delay proceeds realization but could also significantly depress the share price, adversely affecting the group's ultimate returns.

Instead, the disposal ensures the group can exit its illiquid investment at an agreed price of HK$0.12 per share, locking in returns and eliminating risks associated with potential value erosion from open-market sales. Furthermore, settling the consideration by offsetting the loan allows the group to realize its investment immediately without exposure to settlement or counterparty risks.

The transaction will also improve the group's key financial ratios, such as debt-to-asset and debt-to-equity ratios, by removing the loan from its balance sheet without depleting cash reserves. This move stabilizes the group's cash flow planning, simplifies its capital structure, and enhances financial health. The strengthened balance sheet will bolster the group's access to capital markets, providing greater flexibility to fund future core business initiatives when needed.