BONNY HLDG (01906) announced that, to mitigate the ongoing impact of declining revenue from its branded products business on the Group's profitability, Mr. Jin Bo, son of the Company's controlling shareholder Mr. Jin, has proposed to acquire Hong Kong BONNY. As of the date of this announcement, Hong Kong BONNY holds the branded products business and related properties, along with bank and other borrowings secured by these properties (amounting to approximately RMB 223 million as of December 31, 2025). Upon completion of the transaction, the Group will focus on its ODM business, and all borrowings secured by the properties will be transferred out of the Group, significantly reducing the Group's overall financial burden.
On April 10, 2026, the Company entered into a share purchase agreement with the buyer, Hong Kong BODE TRADING, and Mr. Jin (as guarantor) for the sale and purchase of the entire issued share capital of Hong Kong BONNY for a cash consideration of RMB 241.7 million. Following completion, Hong Kong BONNY will cease to be a subsidiary of the Company.
After completion, Hong Kong BONNY will no longer be a subsidiary of the Company. Since the factory used for the Group's ODM business is located on the properties owned by Zhejiang BONNY, the Company's subsidiary, Yiwu BONNY, will enter into a lease agreement with Zhejiang BONNY. Under this agreement, Zhejiang BONNY will lease the designated areas to the Group for a term of three years commencing from the completion date.
Upon completion, Hong Kong BONNY will be wholly owned by the buyer, which is indirectly wholly owned by Mr. Jin Bo, making it a connected person of the Company. In accordance with Hong Kong Financial Reporting Standard 16, the leased areas under the lease agreement will be recognized by the Company as right-of-use assets. Furthermore, under the Listing Rules, the transactions contemplated under the lease agreement will be classified as the Company's acquisition of right-of-use assets.
As the Group possesses the machinery, equipment, and technology required for the branded products business, the Company will enter into a framework agreement with Hong Kong BONNY following completion. Pursuant to this agreement, the Group will provide manufacturing services to the Hong Kong BONNY Group for the branded products business for a period of three years starting from the completion date.