SC HOLDINGS (00413): The court has ordered the winding up of Wah Shing Toys.

SC HOLDINGS (00413) has announced that, pursuant to Chapter 32 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance of the Laws of Hong Kong, Wah Shing Toys was ordered by the High Court to be wound up on 16 September 2026. The Board considers that the Group is able to continue operating its other principal businesses and has sufficient resources, operating capacity and assets of sufficient value, and that the winding up of Wah Shing Toys will not have a material impact on the overall business prospects of the Group, because (a) it plans to transform through another subsidiary into a primarily trading-oriented model; (b) the continuing operating losses of the Wah Shing Toys group will no longer be consolidated into the Group's consolidated financial results; (c) the Group's other businesses are relatively diversified; and (d) as at 30 June 2026, the Group had a strong asset base of over HK$10.941 billion. Accordingly, the winding up of Wah Shing Toys is not material to the Group as a whole and will not affect the operations or financial position of the Group's other principal subsidiaries. In addition, the business of Wah Shing Toys has been loss-making, and terminating its operations will eliminate a drag on the Group's consolidated results and is expected to bring cost savings, which will have a positive impact on the Group's financial position. The Board believes that these measures will enhance the Group's resilience and improve its ability to focus resources on profitable and sustainable business segments.