FW HOLDINGS (00572) Divests 278 Million Pre-Consolidation and 5.5805 Million Post-Consolidation Shares in Xiaoyu

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FW HOLDINGS (00572) has announced a series of transactions conducted between June 9, 2025, and January 2, 2026. During this period, the Group divested 278 million pre-consolidation shares and 5.5805 million post-consolidation shares of Xiaoyu on the open market. The total consideration for these sales amounted to approximately HK$7.437 million, excluding transaction costs. The Group initially acquired the Xiaoyu shares for investment purposes. It is noteworthy that the trading price of Xiaoyu shares has exhibited significant volatility over recent years. As a result of the disposals and based on the carrying value of the sold shares, the Group expects to recognize a gain of approximately HK$1.976 million in its financial statements, excluding stamp duty and related transaction expenses. This gain is calculated as the difference between the carrying value of the shares sold and the total gross proceeds from the disposals, net of transaction costs. The Company believes that these divestments present an opportunity for the Group to reallocate its resources and reconfigure its investment portfolio. The net proceeds from the sales, approximately HK$7.4 million, are intended to be used as general working capital for the Group.

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