CITYCHAMP (00256) is selling 50% of the equity of Rotary Watch & Jewellery Limited for a total maximum price of 7 million.

Citychamp (00256) announced on May 20, 2026, the Seller, Buyer Peers Hardy (UK) Limited, Lautray (UK) Limited, Lautray (Switzerland), and the Company signed a share purchase agreement. Under this agreement, the Seller agreed to sell and the Buyer agreed to acquire 50% of the shares of Rotary Watch & Jewellery Limited (representing 50% of the issued share capital of the company) for a total maximum consideration of 7 million (approximately HK$73.36 million). Prior to completion, the Seller held 100% of the shares of the company. Upon completion, the Seller and the Buyer will each hold 50% of the shares of the company. After completion, the company will no longer be a subsidiary of the Company, and its financial performance will no longer be consolidated into the Company's financial statements. The transfer agreement was executed concurrently with the share purchase agreement, under which the trademarks will be transferred and assigned to the company. According to the articles of association adopted by the company on the sale, the Seller has granted the Buyer a tag-along right. If an offer is received to purchase 100% of the shares of the company for not less than 12 million, and the offer is not approved by both the Seller and the Buyer, the Buyer has the right to exercise the tag-along right and require the Seller to transfer 25% of the shares of the company to a third party buyer for up to 3 million in cash (representing 25% of the issued share capital). The directors believe that, given the current opportunity to sell the company's shares to the Buyer, the sale is in the best interests of the group. The sale will allow the group to streamline its business and optimize its resource allocation, focusing its financial and management resources on core business activities (including using the net proceeds from the sale for the group's working capital), thereby enhancing shareholder value.