CHONG FAI JEWEL (08537) announced that on May 13, 2026, its wholly-owned subsidiary, Depasser Group Holdings Company Limited, has entered into an agreement to acquire 25% of the issued share capital of Zhuohui Jewelry Limited from Mr. Fu Zhenqiang for a consideration of HK$8.8 million. The target company is primarily engaged in investment holding. As of the date of this announcement, the target company has no subsidiaries and holds no significant assets other than a specific property. This property is a commercial premises located at Shops 6-13, G/F, Fuyi Court, No. 9 Jiangxi Street, and Nos. 72, 72A, 72B, 72C, 72D, 74, 76, 78, 82, 84, 86, and 88 Gaoshan Road, Kowloon, Hong Kong.
The Board of Directors believes the location of this property, which currently serves as the company's headquarters office and online business showroom, is of significant importance to the group's online operations in Hong Kong. Following the execution of the sale and purchase agreement, if the target company renews the existing lease agreement with Chong Fai Group Holdings Limited (an indirect wholly-owned subsidiary of the company and the current lessee under the lease), the company can ensure a controlled increase in rental costs for the property over the next five years. This measure is expected to stabilize the profitability of its Hong Kong online business.
Furthermore, upon completion of the transaction, the company's equity interest in the target company (held through the buyer) will increase from 20% to 45%. Consequently, the company's share of the target company's profits is anticipated to partially offset the rental costs paid by Chong Fai Group Holdings Limited to the target company.
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