EMPEROR CAPITAL (00717): Plans to sell all shares of Jlian Group.

EMPEROR CAPITAL (00717) announced that on August 17, 2026, the seller (the company's directly wholly-owned subsidiary, Emperor Securities Investment Holdings Limited) and the buyer, Mr. Cao Sulin, entered into a sales agreement concerning the sale of all equity interests in the target company (Juliang Group Limited) and the loans owed to the seller by the target group, for a price of HKD 37 million. The target company is an investment holding company, whose only asset is all the equity of Emperor Excellent Credit. Emperor Excellent Credit is a company registered in Hong Kong and is an indirect wholly-owned subsidiary of the company. Emperor Excellent Credit mainly engages in unsecured lending business. The target company primarily holds several long-overdue receivables, which are derived from the groups discontinued unsecured lending business. Following the cessation of this business, the group has spent over three years taking extensive measures to recover the outstanding receivables, including negotiating payment arrangements with debtors, issuing collection letters, appointing external debt collection agents, and initiating legal proceedings against several debtors. Despite the significant time, effort, and costs invested during this period, no effective results have been achieved in recovery, and the directors believe that the recoverability of these outstanding receivables remains uncertain, with any potential recovery (if realizable) expected to take a long time. Considering the prolonged aging of these receivables, the lack of substantial recovery despite ongoing efforts, and the additional time and costs required for further recovery actions with uncertain outcomes, the directors believe that it is commercially unreasonable to continue pursuing the collection of these receivables. The sale will enable the group to cease incurring further administrative and legal expenses, avoid further investment of management time and resources, and allow the group to redeploy its resources to its core business operations.