KWG GROUP (01813) plans to sell 50% of its shares in Precious Wave Investments Limited for an estimated 1.6 billion yuan.

KWG GROUP (01813) announced that on May 26, 2026, the seller, Best Day Enterprises Limited (a wholly-owned subsidiary of the Company) entered into an agreement with the buyer Running Time Limited. Under this agreement, the seller agreed to sell, and the buyer agreed to purchase, a sale share (representing 50% of the issued share capital of the target company) for a price of RMB 160 million (adjustable). The target company, Precious Wave Investments Limited, holds a 66.66% equity interest in the cooperative joint venture property holding, operation, and management company, Guangzhou Fuching Real Estate Development Co., Ltd., through its wholly-owned subsidiary Junsheng Limited. Upon completion, the Group will no longer hold any interests in the target company. The target company is a joint venture company established by the Company and SHK PPT (China), while the cooperative joint venture company (held 66.66% by the target company) is a joint venture company established by the Company, SHK PPT, and Guangzhou R&F. Considering the current financial situation of the Group, the Board of Directors believes that the sale transaction will resolve any pending tax issues related to the target group and/or the cooperative joint venture property, provide a comprehensive exit solution for the Group, optimize resource allocation, and provide financial support for its operations.