Realord Group (01196) announced that on November 1, 2024, the company entered into an agreement with Merrill Lynch Holdings, under which the company plans to sell 75% of the issued shares of Sincere Limited to Merrill Lynch Holdings for approximately 0.388 billion Hong Kong dollars. This amount will be paid by Merrill Lynch Holdings through offsetting part of the shareholder loan owed by the company on an equal basis.

Considering the continuous losses of Sincere Group and the unfavorable short-term outlook in the Hong Kong retail market, the board of directors believes that the poor performance of Sincere Group may continue to have a negative impact on the group's financial condition. In order to mitigate the impact of market uncertainties in the department store business on the group, it is now proposed that the company exit its investment in Sincere Group through the sale transaction.