ZHIXIN GP HLDG (02187) subsidiary plans to sell all shares of Xiamen Zhixin New Materials for RMB 46.662 million.

ZHIXIN GP HLDG (02187) announced that on June 26, 2026 (after trading hours), the seller Xiamen Zhixin Building Materials Group Co., Ltd. (a wholly-owned subsidiary of the Company) entered into a sale and purchase agreement with the buyer Xiamen Special Economic Zone Construction Investment Building Materials Co., Ltd. and the Company (as guarantor), whereby the seller conditionally agreed to sell and the buyer conditionally agreed to purchase the target equity (i.e. all the equity shares of the target company Xiamen Zhixin New Materials Co., Ltd.) for a total consideration of RMB 46.662 million (equivalent to approximately HKD 54 million). The target company, established by the Group in China, solely holds the main ready-mixed concrete production and other supporting facilities of the Group, primarily includes: (a) a piece of land and multiple buildings located at No. 55 Guankou Avenue, Jiemei District, Xiamen, Fujian Province, China; (b) ready-mixed concrete production line, plant, and equipment; and (c) logistics and other supporting assets, including trucks, office equipment, qualifications, and licenses, etc. The Board of Directors believes that the sale provides the Group with a good opportunity to realize satisfactory returns on these assets, integrate financial resources for developing environmentally friendly and lightweight building products or other better opportunities, and improve the overall cash flow and financial position of the Group. The Directors (including independent non-executive Directors) believe that the terms of the sale and purchase agreement are fair and reasonable, entered into on normal commercial terms, and the sale is in the overall interest of the Company and its shareholders.