CONTINENTAL H (00513.HK): Agrees to Sell Entire Equity of Property-Holding Subsidiary for HKD 85 Million; Trading to Resume on 20 August

NewTimeSpace News: On 19 August 2026, Hang Fung Jewellery Group Limited (stock code: 00513) announced that its directly wholly-owned subsidiary, Hang Fung Property Development Limited (the seller), entered into a sale and purchase agreement on 18 August after trading hours with Cheer Stay (BVI) Limited (the buyer) and the company (as guarantor of the seller), to sell the entire issued share capital of the target company, Zhicai Group Limited, and to transfer the sale debts owed by the target company to the company of approximately HKD 184.8 million, for a total consideration of HKD 85.0 million (subject to adjustment).

The target company mainly holds a vacant redevelopment site at 164 and 164A Boundary Street, Kowloon, Hong Kong, with a site area of approximately 5,054 square feet, planned to be redeveloped into residential units with parking spaces; the property had an appraised market value of approximately HKD 217 million as of 30 June 2025. As one or more applicable percentage ratios exceeded 75%, the disposal constitutes a very substantial disposal requiring reporting, announcement, circular and shareholders' approval; the company will seek approval at an extraordinary general meeting, with the circular expected to be despatched on or before 9 September 2026.

Taking into account the total consideration, the book values of the target company and the sale debts and estimated transaction costs, the group expects to record an estimated loss of approximately HKD 135 million from the disposal. The directors consider that, given the current macroeconomic environment and challenging property market, the disposal provides the group with an opportunity to realize its investment and avoid further capital commitments, and is commercially prudent at this stage. Trading in the company's shares was suspended from 9:00 a.m. on 19 August 2026, and an application has been made to resume trading from 9:00 a.m. on 20 August 2026.

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