According to the announcement from DIWANG IND H (01950), on November 11, 2025 (after trading hours), the company (as the seller) entered into a second sale and purchase agreement with the buyer (BlueOcean Investment (Global) Ltd), under which the buyer conditionally agrees to purchase shares from the seller at a purchase price (representing 24% of the issued share capital of the target company Darkblue Investment Ltd.). The purchase price of RMB 29.86 million shall be paid in cash in installments.

On December 27, 2024, the company (as the seller) entered into the first sale and purchase agreement with the buyer regarding the first sale matter to sell a 25% interest in the target company. As of the date of this announcement, the company (as the seller) holds 75% of the issued share capital of the target company. Upon completion, the target company will be held 51% by the company and 49% by the buyer. Therefore, the target company will continue to be a subsidiary of the company after completion, and its financial performance will continue to be consolidated with the group's performance.

The total proceeds from the second sale matter are expected to be RMB 29.86 million, which will be used by the group to repay group debts, invest in new potential business opportunities, and serve as general working capital for future funding needs of its business.

Mr. Cao, the ultimate beneficial owner of the buyer, has worked in the artificial leather industry for over 20 years and is currently engaged in foreign trade business of artificial leather. It is believed that the execution of the second sale and purchase agreement and the proposed second sale matter will (i) enhance the group's sales, as Mr. Cao will assist in developing the sales and foreign trade market for artificial leather; and (ii) provide the group with the opportunity to sell part of its interest in the target company to better utilize its management and financial resources, maintain its existing operations across various businesses, and bring immediate cash inflow to the group. Therefore, this will improve the group's liquidity, increase working capital, and strengthen its overall financial position. Given the high profitability recorded in the liquor business in recent years, the group intends to allocate more resources to this business. In addition, the board is considering transforming into a light asset business structure in the coming years, establishing a synthetic leather chemical product trading business within its manufacturing operations. The second sale matter provides a valuable opportunity for the group to supplement its working capital and focus on developing the synthetic leather chemical product trading business