Cornerstone Financial's subsidiary enters into a sales agreement with Excellent Investment Services Limited

According to the announcement from Cornerstone Financial (08112), on September 17, 2025 (after trading hours), the seller Focus Media Network Limited (a wholly-owned subsidiary of the company) and the buyer Excellent Investment Services Limited entered into a sales agreement, under which the seller conditionally agreed to sell and the buyer conditionally agreed to purchase the sale shares (i.e., all issued share capital of the target company held by the seller as the registered holder and beneficial owner of the target company), for a total cash consideration of HKD 3 million.

The target company Focus Media Singapore Pte. Limited is a limited company registered in Singapore and is a direct wholly-owned subsidiary of the seller, primarily providing outdoor advertising services in Singapore.

The advertising industry is undergoing structural changes, consistent with a significant shift in marketing patterns from traditional media spending to online and social media platforms. Considering the financial performance of the target company and the changing business environment, the group believes that entering into the sales agreement and the proposed sale will: (i) provide the group with an opportunity to achieve a premium above the book value of the target company; (ii) enable the group to streamline operations and allocate management and financial resources to markets where the group has stronger local expertise; (iii) generate immediate cash inflow to enhance the group's overall working capital and meet future business development funding needs; and (iv) align with the group's business strategy, allowing the group to maintain resilience during business development and retain financial resources when growth opportunities arise