Core Viewpoint - Easyknit Properties, a wholly-owned subsidiary of the company, has entered into a conditional sale agreement with Gao Shan to sell all issued share capital of Zhuo Yi for a net amount of approximately HKD 295.5 million, reflecting the expected unpaid amount owed to Zhuo Yi on the completion date [1][2] Group 1: Transaction Details - The expected purchase price is approximately HKD 268.4 million, to be paid through the issuance of 2025 convertible bonds by Gao Shan to Easyknit Properties or its agents on the completion date [2] - The significant asset of Zhuo Yi is a property located at 19 Garden Square, Mong Kok, Kowloon, with a saleable area of 13,544 square feet [1] - Zhuo Yi also holds equity securities listed in Hong Kong, including 42.308 million shares of Baifuk Holdings and 268,000 shares of China Ping An Insurance, with a total fair value of approximately HKD 46.3 million as of March 31, 2025 [1] Group 2: Strategic Implications - The sale of Zhuo Yi and the associated property aligns with the company's strategy to prudently maintain cash flow rather than continuously fund cash outflows [2] - The transaction is expected to not result in any anticipated losses for the company and its shareholders [2] - The interest from the 2025 convertible bonds will provide a regular income source for the group and offset cash expenditures related to the property, which exceed rental income [2] - The transaction will also reduce the group's debt-to-equity ratio, indicating a healthier financial position [2]