KWG GROUP announced that on May 26, 2026, its wholly-owned subsidiary, Best Day Enterprises Limited, as the seller, entered into an agreement with the buyer, Yun Shi Limited. Pursuant to the agreement, the seller agreed to sell, and the buyer agreed to purchase, the sale shares, representing one issued share of the target company, equivalent to 50% of its issued share capital, for a consideration of RMB160 million, subject to adjustment.

The target company, Precious Wave Investments Limited, holds a 66.66% equity interest in the cooperative joint venture, Guangzhou Fujing Real Estate Development Co., Ltd., through its wholly-owned subsidiary, Jun Sheng Limited. The cooperative joint venture is primarily engaged in the holding, operation, and management of the cooperative joint venture property.

Upon completion of the transaction, the group will no longer hold any interest in the target company. The target company was established as a joint venture between the company and Sun Hung Kai Properties (China). The cooperative joint venture, in which the target company holds a 66.66% stake, was formed as a joint venture between the company, Sun Hung Kai Properties, and Guangzhou R&F Properties.

In light of the group's current financial condition, the directors believe the sale will address pending tax matters related to the target group and/or the cooperative joint venture property. It will provide the group with a complete exit solution, aiding in the optimization of resource allocation and offering funding support for its operations.