Gao Shan Enterprise (00616) announced that on June 28, 2024, the seller, Smart Cong Holdings (an indirect wholly-owned subsidiary of the Company), entered into a provisional sale and purchase agreement with the buyer, Reality Land Holdings Limited, pursuant to which the seller agreed to sell and the buyer agreed to purchase the property at a consideration of HKD 36 million, subject to fulfillment of the conditions precedent as set out in the provisional sale and purchase agreement.

The property was acquired by the seller in 2009. As of the date of this announcement, the seller owns the property located at Shop No. 1 on the ground floor of a 15-storey residential and commercial integrated building completed in 1967 at No. 148 Johnston Road, Hong Kong.

Considering the current property market conditions, increasing competition in the Hong Kong property market and uncertain future prospects, as well as the Group's current financial, debt and liquidity position, the Board of Directors believes that the sale is to enable the Group to realize the value of the property at a fair price and to reallocate the Group's available funds to other investment opportunities. In addition, the proceeds from the sale will enhance the Group's financial position and increase the Group's working capital. The sale will enable the Group to realize its property investment and reallocate its financial resources to other business developments.