Kwoon Chung Bus (00306) is currently in preliminary discussions with a potential buyer regarding the possible sale of a stake in its non-wholly owned subsidiary.

KWOON CHUNG BUS (00306) announces that the Group is currently in preliminary discussions with a potential buyer (a third party independent of the Company and its affiliates) regarding the potential sale of equity in a non-wholly owned subsidiary registered in Li County, Sichuan Province, People's Republic of China. If the potential sale is completed, in accordance with Chapter 14 of the Listing Rules, the potential sale will constitute a major transaction for the Company. The Board of Directors hereby emphasizes that further discussions and the signing of formal agreements are required to finalize details of the potential sale. As of the date of this announcement, the Group has not signed any letter of intent or specific agreements. The potential sale may not necessarily proceed.