CHEVALIER INT'L (00025) intends to sell a Canadian car dealership business.

CHEVALIER INT'L (00025) announced that on September 16, 2025, the seller (all of which are indirect wholly-owned subsidiaries of the Company) entered into an asset purchase agreement with the buyer, under which the seller conditionally agreed to sell the properties and business assets at a price. The buyer will acquire non-property assets related to the business from the seller, including but not limited to: (a) all unsold new cars; (b) several unsold used cars; (c) several demo/service substitute cars; (d) parts, tires, gasoline, and accessories; (e) work-in-progress; (f) prepaid expenses; (g) commercial receivables; (h) undelivered sold vehicles; (i) furniture, fixtures, equipment, and machinery; and (j) goodwill (collectively referred to as "business assets"). The properties are those operated by the business seller before the date of the asset purchase agreement. The board of directors believes that this sale provides an excellent opportunity for the group to realize the investment value in the business. In recent years, the Canadian automotive industry has faced significant challenges, including rising interest rates and increasing costs of new cars, which have dampened consumer willingness to purchase new vehicles. By exiting this business, the group can streamline operations, reduce risks from market fluctuations, and reallocate resources to core businesses, thereby realizing higher growth potential and creating synergies with the group's strategic focus. The directors confirm that the asset purchase agreement and sale are conducted on normal commercial terms and will not have a significant adverse impact on the group's operations and financial condition. The directors believe that the terms of the sale (including the price) are fair and reasonable, and the sale is in the overall interest of the Company and its shareholders.