JIYI HOLDINGS (01495) intends to sell all the equity of Jiyi Investments Limited for HKD 10,000.

JIYI HOLDINGS (01495) announced that on December 31, 2025, the company entered into a sale and purchase agreement with China-Italy International Holdings Limited (the buyer) to sell all of the issued share capital of Jiyi Investment Limited to the buyer for a consideration of HK$10,000. The target company and its subsidiaries are primarily engaged in building material sales through retail channels. Considering that they have generated minimal profits and sustained losses in several years, they ceased operation since January 1, 2025. Due to the deteriorating financial condition and limited business prospects of the target company, as well as limited financial resources of the group due to providing financial support to the target company, the sale transaction is aimed at streamlining the group structure by divesting an underperforming subsidiary and reducing the financial burden of maintaining a solvent subsidiary. The group expects to benefit from the sale transaction and believes it will enable management to focus resources on developing the core business of the group and reduce financial burden associated with maintaining a solvent subsidiary. The directors (including independent non-executive directors) consider the terms of the sale transaction to be fair and reasonable, and in the overall interest of the company and its shareholders.