Bauhinia International Finance (08340) plans to sell all shares of Bauhinia Consulting Limited

According to Zhitong Finance App, Bauhinia International Finance (08340) announced that on August 31, 2026, the seller Tongyi Global Limited (a wholly-owned subsidiary of the company) and the buyer Lau Chun-ting (independent third party) signed an agreement on the sale. Based on this, the seller agreed to sell and the buyer agreed to buy the shares to be sold at a cost of HK$1.00. The shares to be sold are all issued shares of the target company, Bauhinia Consulting Co., Ltd., and the target company is an indirect wholly-owned subsidiary of the company as of the date of the agreement and until completion. After the transfer of the shares to be sold is completed, the target company is no longer a subsidiary of the company.

Since the outbreak of hostilities between the US and Iran in February 2026, international oil prices have continued to fluctuate greatly. Among them, Brandt crude has risen to about 120 US dollars per barrel. Rising fuel costs have had a negative impact on customer demand to rent fuel-powered vehicles. Recognizing that NEVs are the future development trend of the industry, management made a strategic decision to sell all of the Group's fuel vehicles for the period ending June 30, 2026. As a result, the Group no longer maintains any vehicle fleets. Management further believes that the sale and termination of the car rental business will benefit the Group, not only saving maintenance costs for the old fuel fleet, but also reducing administrative expenses by streamlining the group structure, in particular maintaining an entity in a state of loss and net liabilities. The directors believe that the sale is an opportunity for the company to realize the value of the target company at a reasonable price, and that the proceeds from the sale will improve the Group's financial position and increase its general working capital.