G CHINA FIN (00431) intends to sell all the issued shares of Xinyun Lian Investment.

G CHINA FIN (00431) announced that on March 25, 2026, the seller, Jiali Investment Limited (a direct wholly-owned subsidiary of the Company), entered into a sales agreement with the buyer, Kan Chao, whereby the seller conditionally agreed to sell and the buyer conditionally agreed to purchase the sale shares at a total price of HK$1.00. The sale shares consist of 50,000 shares of the issued shares of the Company with a face value of USD 1.00 per share, representing the entire issued share capital of the Company as of the date of this announcement. The selling company, New Cloud Union Investment Limited, is an investment holding company registered in the British Virgin Islands. The selling company directly and indirectly holds equity interests in eight subsidiaries established in China and one associated company. The selling group mainly engages in loan financing activities through these subsidiaries (including providing financial guarantees, small loans, loan referrals, financial consulting services in Ningbo, China), and holds an internet small loan license in China, officially allowing it to provide financial products to all registered tobacco retailers in China. In addition to online loan financing business, the selling group also engages in other businesses including advertising services for tobacco retailers and operation of an e-commerce platform. However, due to adverse economic and business environment in China, the loan financing business in Ningbo has been completely suspended since 2024. The Board believes that the proposed sale will help alleviate the financial burden on the selling group. As the selling group has been incurring losses for consecutive years and is in a net debt position, the Board believes that the proposed sale will release the working capital originally allocated to the selling group, allowing resources to be more efficiently allocated to the Company's remaining businesses, namely the tobacco fragrance business.