GME Group Holdings (08188.HK) announced on November 4, 2024, that the buyer (a wholly-owned subsidiary of the company), the seller Huang Zhongran, and the company (as guarantor) entered into a purchase agreement. Accordingly, the seller agreed to sell and the buyer agreed to acquire the shares (total number of shares of the target company Jianxin Construction Co., Ltd.) for a price of 15.7 million Hong Kong dollars, subject to compliance with the terms and conditions of the purchase agreement, with the company agreeing to guarantee the buyer's performance of the obligations under the purchase agreement. As of the date of this announcement, the transaction has been finalized.

Upon completion, the target company has become an indirect wholly-owned subsidiary of the company. The financial performance of the target company will be consolidated into the company's comprehensive financial statements.

The target company is a limited company registered in Hong Kong, mainly engaged in architecture engineering and providing engineering services in Hong Kong.

The company anticipates a continued demand in Hong Kong for public infrastructure construction projects. Therefore, the director believes that the acquisition aligns with the group's business development strategy, and the target company's operations have high profit potential. It is believed that the target company can be well integrated with the group's operations, further expanding its scale and scope.

Furthermore, it is expected that the licenses held by the target company are crucial for enhancing the business development of the group, leading to business synergies and improving the overall performance of the group post-completion, while also bringing significant returns to shareholders. Additionally, half of the consideration will be paid through the issuance of second and third series acceptance notes, thereby substantially reducing the immediate cash flow burden on the group.