SUNWAH KINGSWAY (00188) plans to sell its 30% stake in KCG Capital for HKD 16.1 million.

SUNWAH KINGSWAY (00188) announced that on October 31st, 2025, the company's wholly-owned subsidiary, SW Kingsway Capital Group Limited, as the seller, and the buyer (KCG Capital, an affiliated company of the company) signed a sales agreement regarding the sale of 15,000 shares, representing 30% of the issued share capital of KCG Capital. According to the sales agreement, the seller agrees to sell and the buyer agrees to repurchase the sales shares through a share repurchase transaction, for a consideration of HK$16.1 million (excluding transaction costs). After the sale is completed, the company will no longer hold any shares in KCG Capital, and KCG Capital will no longer be classified as an associate company. Before the sale, the group held a 30% stake in KCG Capital and did not participate in the management or strategic decisions of KCG Capital. KCG Capital has not distributed dividends in the past years. The sale will bring immediate liquidity to the group, improve its cash position, and optimize its asset portfolio structure. The group plans to use the proceeds from the sale as general operating funds and cash reserves to seek potential investment opportunities in the future. The consideration was determined after fair negotiation by the contracting parties, taking into account KCG Capital's latest unaudited net asset value and current market conditions. The HK$16.1 million received upon completion will strengthen the company's general operating fund base.