SINCEREWATCH HK (00444) announced that on February 3, 2026, the buyer (the company's wholly-owned subsidiary, Beijing Mailiwell Technology Co., Ltd.), the seller Ms. Feng Meiying, and the guarantor entered into a share transfer agreement. The buyer intends to acquire a 51% equity interest in the target company, Nantong Rongyu Energy Technology Co., Ltd., from the seller for a consideration of RMB 1 million. The consideration is to be settled by the buyer issuing an acceptance note to the seller upon completion. Following the completion, the company will hold an interest in 51% of the target company. Consequently, the target company will become an indirect non-wholly-owned subsidiary of the company, and the target company's financial results will be consolidated into the Group's accounts. The target company is primarily engaged in the natural gas and refined petroleum business, specializing in natural gas wholesale, vehicle refueling, and gas station construction. The Group is principally engaged in the distribution of luxury brand watches, timepieces, and accessories under the 'Wah Kwong' brand, as well as property investment, in Hong Kong, Macau, Taiwan, and Mainland China. The industry continues to face challenges from weak non-essential consumer spending and macroeconomic uncertainties, leading to persistently soft consumer demand. The luxury market is expected to remain under pressure in the short term. Against this backdrop, the management has adopted a prudent stance towards the existing business and continues to explore potential opportunities to diversify the Group's business and revenue streams, thereby mitigating the impact of any potential risks and uncertainties. The target company's main business involves the wholesale and retail of natural gas, including the distribution of liquefied natural gas (LNG) and compressed natural gas (CNG). The target company collaborates with several major gas companies, acting as a supplier to them. In 2025, the target company achieved sales of approximately RMB 24 million and has gradually established stable sales channels across various regions in China. Currently, the target company operates on a "business-to-business" (B2B) model, with a long-term goal of further developing into an integrated enterprise focused on clean energy. Supported by Chinese government policies, natural gas plays a pivotal role in the process of substituting low-carbon energy for high-carbon energy. The Board believes that the acquisition will provide the Group with an opportunity to venture into the clean energy business, achieving diversification of its revenue sources.