HK GOLD IND GP (02623): Termination of Acquisition of 20% Equity Interest in Guixi Baojia

HK GOLD IND GP (02623) announced that, in relation to (among other things) the establishment of Jiangxi United Enterprise Management Center (Limited Partnership) and its acquisition of a 20% equity interest in Guixi Baojia Mining Co., Ltd., which is engaged in the mining and processing of non-ferrous metals such as silver, lead and zinc. As a limited partner of the partnership, the Group was informed by the partnership on November 2, 2026 that, as the partnership and Lanxiang Mining were unable to reach agreement on certain commercial terms of the Baojia Acquisition, no formal equity transfer agreement could be entered into in respect thereof, and after friendly negotiations, the parties mutually agreed on November 2, 2026 to enter into a termination agreement to terminate the letter of intent and the Baojia Acquisition. As the principal purpose of the partners in establishing the partnership was to jointly invest in Guixi Baojia, the Group, together with the other partners of the partnership, have mutually agreed to dissolve the partnership and, before completing the necessary procedures for dissolution, to reduce the total registered capital of the partnership to RMB1 million (of which RMB488,700, RMB488,700 and RMB22,600 are to be contributed by Shenzhen Xinlong, Jiangxi Xintongying and Beijing Century respectively), to cover the expected costs of dissolution. The Board considers that the termination will not have any material adverse impact on the financial performance and operations of the Group. The Group will continue to utilize the proceeds from the rights issue allocated for investment and acquisition purposes to seek and explore other suitable acquisition and/or investment opportunities to acquire strategic interests in companies engaged in or owning (among other things) high-quality mines and natural resources, thereby advancing its business diversification plans.