YGM TRADING (00375) plans to sell all of its issued shares in YGM Retail.

YGM TRADING (00375) announced that on September 1, 2025, the sellers (YGM Limited and Yampa Investments Limited) and the debt seller entered into a sales agreement with the buyer (Sing Ming Trading) regarding the sale of all issued shares of YGM Retail and the transfer of YGM Retail's payable sales loans, for a total consideration of HK$34.32 million. Upon completion of the sale, YGM Retail will enter into a distribution and manufacturing license agreement with YGM Marketing. YGM Retail will grant YGM Marketing exclusive rights to market, distribute, and sell products in Hong Kong and Macau, non-exclusive rights to manufacture products globally, and non-exclusive rights to use Ashworth IP in manufacturing, promoting, marketing, distributing, and selling products in Hong Kong and Macau. The agreement will be for a period of three years starting from the completion date. The trademark royalty fees receivable involve minimum trademark usage fees and additional trademark usage fees calculated based on recorded sales/purchases (where applicable). Due to a weak global retail environment, all franchisees have only paid the minimum trademark usage fees as per their respective agreements except for one franchisee in 2023. Given the uncertainty regarding the performance of the licensees within the remaining term of the license agreements and the likelihood of renewal upon expiration, the Board considers the sale of the trademark to be a timely decision to realize the investment in Ashworth intellectual property, especially considering the slight losses recorded by YGM Retail. After the completion of the sale, the traditional business of the Group (including the Ashworth brand) will be focused on Hong Kong and Macau, covering clothing manufacturing, wholesale, retail, sales, and marketing activities. As for the Ashworth brand, it will be operated under a franchise granted by YGM Retail to a wholly-owned subsidiary of the Company, YGM Marketing, according to the DML agreement.