Changjiang Garment (00294) subsidiary plans to sell all shares of Excellent Weaving (Guangzhou) Co., Ltd. for HK$42 million

According to Zhitong Finance App News, Changjiang Garment (00294) issued an announcement. On September 15, 2026, the seller Hong Kong Weaving Co., Ltd. (an indirect wholly-owned subsidiary of the company) and the buyer Guangzhou Jinglue Supply Chain Management Co., Ltd. (an independent third party) signed a letter of intent to transfer shares relating to the sale. According to the letter of intent to transfer shares, the seller agreed to sell, and the buyer agreed to acquire all of the shares of the target company Zhuoyue Weaving (Guangzhou) Co., Ltd. at a cost of HK$42 million.

The target company is an indirect wholly-owned subsidiary of the Company as of the date of the letter of intent to transfer the shares and until the transaction is completed. Once the sale is completed, the target company will no longer be a subsidiary of the Company.

The target company operates the Group's weaving factory in Panyu and holds related assets, including land and buildings, for use as factory buildings and employee dormitories. Due to the reduction in the operating scale of the Panyu factory year by year, the plant utilization rate is low. Currently, it is mainly used as a sample room and auxiliary workplace, and no major production activities have been carried out. The Board believes that this sale provides a good opportunity for the Group to achieve the value of the target company and its underlying assets, and that the proceeds from the sale will help enhance the Group's cash flow and financial flexibility.