Core Viewpoint - The company is selling its entire issued share capital of the target company, Zhuanghuang China Holdings Limited, for HKD 1.8 million due to the deteriorating financial performance of its Chinese subsidiary and the anticipated continued decline in demand for Grade A office design and interior decoration solutions in China [1][2] Group 1: Sale Details - The seller, a wholly-owned subsidiary of the company, plans to sell the target company to a related party, Aeola Investment Limited, for HKD 1.8 million [1] - Upon completion of the sale, the company will no longer hold any interest in the target group, and the target company and its Chinese subsidiary will no longer be accounted for as subsidiaries [1] Group 2: Financial Performance - The Chinese subsidiary, Guangzhou Siwu Architectural Design Co., Ltd., reported a loss for the year ending March 31, 2025, and continued to incur losses for the three months ending June 30, 2025 [1] - The company attributes the losses primarily to the recent economic environment in China affecting Grade A office leasing, resulting in a reduced order volume from clients located in Grade A office buildings [1] Group 3: Strategic Review - The company regularly conducts strategic reviews of its assets and operations [2] - Given the declining financial performance of the Chinese subsidiary and the expected continued decrease in demand for its services, the board believes that the sale will mitigate the adverse impact of the subsidiary's financial performance on the overall financial performance of the company [2] - The sale will allow the company to more effectively concentrate its capital and management resources on seeking other growth opportunities, thereby enhancing its long-term sustainability and development [2]