On December 4, Guolonghui reported that gd-hkgba hldgs (01396.HK) announced that on December 4, 2024, the company (as the seller) signed a share transfer agreement with the buyer Elegance Rich Global Limited regarding the sale matters. According to the share transfer agreement, the company conditionally agrees to sell, while the buyer conditionally agrees to purchase all the equity of the target company Fanri Limited and the equity of the subsidiary companies held by the target company for a consideration of HKD 36 million.

Upon completion of the sale, the group will no longer hold any equity in the target company, the target group will no longer be a subsidiary of the group, and the financial performance of the target group will no longer be included in the group's consolidated financial statements.

The target company is a limited company registered in the British Virgin Islands, mainly engaged in investment holding business. The target equity refers to the entire equity of the target company and the equity of the subsidiaries held by the target company. As of the date of this announcement and before completion, the target company is a directly wholly-owned subsidiary of the company. The target group primarily engages in property development, sales, and operation in Ganzhou City, Jiangxi Province, China.

Despite the frequent introduction of real estate support policies since 2023, the overall china real estate market continues to decline. The continuous drop in housing prices in Ganzhou City has posed severe challenges to various aspects of the local real estate industry, resulting in poor financial performance for the target group. The target group currently holds a large amount of undeveloped land, which requires significant investment for development, and the cash recovery cycle is longer.

In view of the bleak business prospects of the target group and based on a prudent assessment of the above situation, this sale is an opportunity for the company to realize investment returns from the target group, recover cash, and improve liquidity. In addition, upon completion of the sale, the losses of the target group will no longer be included in the group, which is expected to improve the overall financial performance and financial condition of the group.