S. DRAGON (08493.HK): Bank Enforces Sale of Charged Property at HK$24.4M
- The Company obtained a land search report on 18 September 2026 and learned that Hang Seng Bank had enforced its security over the Property and disposed of it on 5 March 2026 for approximately HK$24.4 million, after which the Group ceased to have any interest in the Property.
- As at 31 December 2025, the Group's bank and other borrowings were approximately HK$84.2 million, including HK$15.9 million owed by All Best and HK$10.3 million owed by Gold Profit, both secured by the Property; the Group expects no recovery from the sale proceeds and a disposal loss of approximately HK$0.3 million, subject to final audit.
- Trading in the Shares has been suspended since 9:00 a.m. on 20 October 2025 and will remain suspended pending fulfilment of the Resumption Guidance; the Company is seeking professional advice.
NewTimeSpace News: On 22 September 2026, Scorching Dragon Holdings Limited (stock code: 08493.HK) published an inside information announcement. During the due diligence process in respect of the Possible Transaction, the Company obtained a land search report in respect of the Property on 18 September 2026 and became aware that Hang Seng Bank Limited had enforced its security over the property at House No. 2 of Moritz Avenue, Valais II of Valais, No. 33 Kwu Tung Road, Sheung Shui, New Territories by disposing of it on 5 March 2026 at a price of approximately HK$24.4 million. Upon completion of the Enforcement Disposal, the Group ceased to have any interest in the Property.
The Property was charged in favour of Hang Seng Bank as security for a property instalment loan (the "PIL Loan") granted to All Best Harvest Limited and certain loan facilities (the "GP Loans") granted to Gold Profit Trading Limited. As at 31 December 2025, the Group's bank and other borrowings totalled approximately HK84.2 million, including approximately HK15.9 million owed by All Best and approximately HK10.3 million owed by Gold Profit to Hang Seng Bank, both secured by a charge over the Property. The Group expects that it will not be able to recover any amount from the sale proceeds of approximately HK24.4 million, which would have been applied to settle the PIL Loan and the GP Loans. Based on the sale proceeds of approximately HK24.4 million and the carrying value of the Property of approximately HK24.7 million as at 31 December 2025, the Group expects to record a disposal loss of approximately HK$0.3 million, subject to a final audit by the auditors of the Company.
The Board is of the view that the Enforcement Disposal has discharged a majority part of the Group's repayment obligations under the PIL Loan and the GP Loans, and that as the Property has been vacant and unused by the Group for a prolonged period, the Enforcement Disposal has no material impact on the Group's business operations. The Company is seeking advice from professional parties for further details of the Enforcement Disposal. In addition, trading in the Shares on the Stock Exchange has been suspended with effect from 9:00 a.m. on 20 October 2025 and will remain suspended until further notice pending the fulfilment of the Resumption Guidance.
NewTimeSpace Disclaimer: All content herein is the original work of NewTimeSpace. Any reproduction, reprinting, or use of this content in any other manner must clearly indicate the source as "NewTimeSpace". NewTimeSpace and its authorized third-party information providers strive to ensure the accuracy and reliability of the data, but do not guarantee the absolute correctness thereof. This content is for reference only and does not constitute any investment advice. All transaction risks shall be borne by the user.
