NEW SILKROAD (00472.HK): To Invest about HK$27m in Korean K-POP-Related Businesses

NewTimeSpace News: On 8 October 2026 (after trading hours), New Silkroad Holding Group Limited (stock code: 00472) announced that its indirect non-wholly-owned subsidiary KSR entered into three agreements forming an integrated investment arrangement: the acquisition of 224,164 ordinary shares of target A (i-Aurora Co., Ltd.), representing approximately 2.67% of its issued share capital, for approximately KRW1,999.99 million (approximately HK$10.8 million); the acquisition of 50,000 ordinary shares of target B (&SOUL Co., Ltd.) for approximately KRW1,390.70 million (approximately HK$7.5 million); and the subscription for 40,500 new ordinary shares of target B at KRW39,735 per share, for approximately KRW1,609.27 million (approximately HK$8.7 million).

The aggregate consideration payable by KSR is approximately KRW5 billion (approximately HK$27.0 million), expected to be funded by the Group's internal resources; upon completion of the relevant agreements, KSR will hold an aggregate of 90,500 ordinary shares of target B, representing approximately 30.98% of its enlarged issued share capital. KSR has also entered into a guarantee agreement providing investment protection, repurchase, guarantee and warranty arrangements.

Key terms of the guarantee agreement include: each of targets A and B has undertaken to complete a listing on KOSDAQ or KOSPI by 31 August 2028; upon specified trigger events (including failure to list, material breach, loss of control by the ultimate controller and unauthorised material related-party transactions), KSR may require Chang youngsu and Kim Hye-young to repurchase all of its shares, at the higher of the investment principal plus 10% compound interest per annum and the fair market value determined by an independent valuer; the obligations are supported by personal guarantees, corporate guarantees and share pledges, and KSR is granted customary minority investor protections including board nomination, veto, anti-dilution, most-favoured-nation, tag-along and drag-along rights.

Target A is principally engaged in prepaid card electronic payment, membership and K-POP-related services, while target B sells and distributes K-POP merchandise. The Group is principally engaged in property management and is exploring expansion into global trade; the investment will help it understand the Korean consumer market and explore procurement, distribution, payment and promotion cooperation. As the agreements form one integrated investment arrangement, they are aggregated under Rules 14.22 and 14.23 of the Listing Rules; as the highest applicable percentage ratio exceeds 5% but is below 25%, the investment constitutes a discloseable transaction.

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