ALCO HOLDINGS (00328.HK): 11% JV Stake Acquisition Agreement Terminated; Remaining Interest Sold for HKD5,000

NewTimeSpace News: On 25 September 2026, Alco Holdings Limited (stock code: 00328) issued a supplementary announcement on the discloseable transaction, updating the status of the joint venture and the acquisition: the conditions precedent were not fulfilled and not waived by the buyer, the acquisition was not proceeded with, the consideration of RMB2,000,000 was not paid, and the agreement was terminated on 28 September 2025, so the acquisition of an additional 11% equity interest in the joint venture did not proceed.

The acquisition arose from an agreement dated 22 August 2025 among the buyer, the seller and the joint venture, under which the buyer agreed to acquire and the seller agreed to transfer an 11% equity interest in the JV for RMB2,000,000; completion was conditional on, among other things, the buyer completing due diligence and being satisfied with the JV's business, financial, tax and legal matters. The JV was incorporated on 23 July 2025.

Subsequently, on 6 January 2026, the Group sold its entire equity interest in the JV to an independent third party for a consideration of HKD 5,000. The initial book value of the Group's 40% interest was approximately HKD 800, with the Group's share of losses of about HKD 3,000 during the period, and the loss recognised limited to approximately HKD 800, reducing the investment's carrying value to zero; the sale consideration of HKD 5,000 gave rise to a gain on disposal of HKD 5,000. Following completion, the Group no longer holds any equity interest in the JV, which ceases to be an investee of the Group.

The Group considers the amounts recognised in respect of the JV to be immaterial. The announcement was signed by company secretary Yu Yi in Hong Kong.

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