On December 2, Garon Hui reported that Rich Goldman Holdings (00070.HK) announced that on December 2, 2024, the seller Reliable Limited (a direct wholly-owned subsidiary of the company), the buyer Ever Bright International Holdings Limited, and the guarantor entered into a sale and purchase agreement, under which the seller conditionally agrees to sell and the buyer conditionally agrees to acquire all of the issued share capital of the target company Jia An Financing Limited, at a price of approximately HKD 9.296 million. After the transaction, the target company will no longer be a subsidiary of the company. Therefore, the financial performance of the target company will no longer be consolidated into the company's financial statements.

The target company is an indirect wholly-owned subsidiary of the company. It has obtained a moneylender license and started credit business on April 20, 2022.

The group's credit business mainly provides unsecured personal loans and property mortgages to the local market in Hong Kong. The group conducts personal loan business through Windpeak Financial and mortgage loan business through the target company. Considering the dim prospects of the Hong Kong property market, intense competition in mortgage loan business, and uncertain future, the group is extremely cautious in operating mortgage loan business. As of the financial years ended June 30, 2024, and 2023, mortgage loan income accounted for only about 12.5% and 17.9% of the group's credit business revenue. As of October 31, 2024, the target company had only 34 customers, with a loan portfolio of approximately HKD 57,469,000.

The net proceeds from the sale transaction (excluding the consideration for recovered amounts) and the net proceeds from the transfer of loans (i.e., the principal amount of the loans held for sale) are estimated to be approximately HKD 50,345,000, and are expected to be used to develop the group's private loan business under the 'Windpeak Financial' brand. After recovery, the expected recovered amounts will be used for the group's working capital.