Yongyi International (01218) plans to sell all shares of Success Active Limited for HK$529 million

Zhitong Finance App News, Yongyi International (01218) announced that on August 28, 2026 (after the trading period), the seller Yuheng Real Estate Holdings Co., Ltd. (a direct wholly-owned subsidiary of the company) entered into a sales agreement with the buyer Quantum Living Accommodation Limited and the company (that is, the seller's guarantor). According to this, the seller conditionally agreed to sell, and the buyer conditionally agreed to buy and sell shares (equivalent to all of the target company Success Active Limited) Issued share capital), at a cost of HK$529 million, subject to the terms and conditions of the sale agreement.

The target company is the sole legal and beneficial owner of the property. The property mainly includes a student accommodation facility called “Senri”. It is located at 470, 472, 474, 476 and 478 Chatham Road North, Kowloon, Hong Kong, with a total floor area of about 3890.297 square meters.

The Group is always looking for the right buyer for this property. The directors believe that, in view of the instability in the Hong Kong real estate market, the sale provides the Group with an opportunity to liquidate or cash out the property at a cost close to the valuation of approximately HK$524 million, while increasing the Group's liquidity level, providing additional cash resources for general working capital and future business development opportunities, and reducing ongoing holding costs, capital expenses and operating burdens associated with owning the property.

The property is currently operated as a student residence through cooperation between the Group and iRent Group; however, taking into account the specific characteristics, valuation, location and market liquidity of the property, the Board believes that the sale provides a timely opportunity to realise the value of the property at the agreed cost, release the capital occupied by a single property asset, reduce the Group's risk of exposure to uncertainties (such as future fluctuations in student demand, occupancy rates, operating costs, maintenance and renovation needs, regulatory risks), and improve the Group's flow through the application of net proceeds in accordance with the Company's stated intentions Sexual and financial flexibility (including enhancing working capital and supporting the Group's continuing operations); although retaining the property allows the Group to continue to receive revenue from fully leased operations, the Board believes that the immediate realisation of value, reduction of potential financing costs and assets and liabilities, and increased flexibility to allocate capital to the Group's business and other opportunities outweigh the benefits of retaining the property; therefore, the Board believes that the sale was commercially reasonable, carried out on general commercial terms and in line with the overall interests of the Company and its shareholders.