Core Viewpoint - Lishin International announced a significant sale involving the disposal of equity in the SPL property entity, indicating a strategic shift in its asset management approach [1][2]. Group 1: Transaction Details - Lishin Development's wholly-owned subsidiary will sell all issued shares of Surearn Profits to Jasmine Investment Development IV Limited for a total consideration of HKD 34.98 billion, plus the net value of Surearn Profits' liquid assets at the time of completion [1]. - The SPL property, located in Hong Kong's commercial center, has a total construction area of approximately 229,200 square meters, including various office floors and parking spaces [1]. - The expected net cash flow from the transaction is approximately HKD 2.4 billion, which will be used for general working capital of Lishin Development Group [2]. Group 2: Financial Impact - Upon completion of the sale, Lishin Garment Group is expected to incur a loss of approximately HKD 269 million, while Lishin Development Group anticipates a loss of about HKD 261 million [2]. - The transaction is subject to conditions including shareholder approvals, with meetings scheduled for December 21 and December 31, 2025 [2]. Group 3: Market Context - The acquisition by Jasmine Investment Development IV Limited is linked to JD.com's investment strategy in Hong Kong, focusing on integrating retail, logistics, and technology development [2]. - The Hong Kong market has seen increased activity in large transactions, with notable deals such as Alibaba and Ant Group's purchase of One Causeway Bay for approximately HKD 7 billion, marking the largest office transaction in five years [3]. - The overall market for large transactions in Hong Kong is recovering, driven by demand from financial institutions, tech giants, and private investors, indicating a return of both self-use and investment demand [4].

Group 1 - The core transaction involves the sale of shares in Surearn Profits, which holds a 50% interest in Wah Lee, by a wholly-owned subsidiary of Lisheng Development to Jasmine Investment Development IV Limited [1] - The sale is part of a broader strategy to enhance the financial position of Lisheng Garment Group and Lisheng Development Group, with an estimated net cash inflow of approximately HKD 2.4 billion [2] - The agreed property value for the transaction is HKD 3.498 billion, which will be combined with the net asset value of Surearn Profits at completion [2] Group 2 - As of July 31, 2025, Lisheng Garment Group and Lisheng Development Group had net current liabilities of HKD 5.42 billion and HKD 4.506 billion, respectively [2] - The refinancing of the syndicated loan for Cheung Sha Wan Plaza is expected to be completed by September 30, 2025, which will further improve the financial metrics of both groups [2] - Upon completion of the sale, both groups are projected to shift from net current liabilities to net current assets [2]

Group 1 - The core transaction involves the sale of shares in Surearn Profits, which holds a 50% interest in Wah Lee, by a subsidiary of Lishin Development to Jasmine Investment Development IV Limited, with completion expected on December 9, 2025 [1] - The sale includes all rights and interests associated with the shares, and the seller will facilitate the liquidation and distribution of the property according to Wah Lee's shareholding [1] - After the completion of the transaction, the seller will no longer hold any interest in the SPL property or Surearn Profits [1] Group 2 - The agreed price for the transaction is based on the property value of HKD 3.498 billion and the net asset value of Surearn Profits at completion [2] - The expected net cash inflow from the transaction is approximately HKD 2.4 billion, which will enhance the financial position of Lishin Garment Group and Lishin Development Group by increasing cash flow and reducing loans [2] - As of July 31, 2025, the net current liabilities for Lishin Garment Group and Lishin Development Group were HKD 5.42 billion and HKD 4.506 billion, respectively, and the transaction is expected to shift them to net current assets [2]