BONNY HLDG (01906) intends to sell all the issued shares of Bonny in Hong Kong.

Bonny Holdings (01906) announced that, in order to eliminate the continued impact of declining revenue from branded product business on the profitability of the group, Mr. Jin Bo, son of the controlling shareholder Mr. Jin, proposed to acquire Hong Kong Bonny, which holds the branded product business and properties as of the date of this announcement, as well as bank and other borrowings secured by the properties (approximately RMB 223 million as of December 31, 2025). After completion, the group will focus on ODM business, and all borrowings secured by the properties will be transferred out of the group, significantly reducing the overall financial burden of the group. On April 10, 2026, the company and the buyer, Hong Kong Bader Trading, and Mr. Jin (as guarantor) entered into a share purchase agreement for the sale and purchase of all issued share capital of Hong Kong Bonny, at a cash price of RMB 241.7 million. After completion, Hong Kong Bonny will no longer be a subsidiary of the company. After completion, as Hong Kong Bonny will no longer be a subsidiary of the company, a lease agreement will be entered into between the company's subsidiary Yiwu Bonny and Zhejiang Bonny, as the factory for the ODM business of the group is located within the property owned by Zhejiang Bonny. Under this agreement, Zhejiang Bonny will lease the leased area to the group for a period of three years from the completion date. After completion, Hong Kong Bonny will be fully owned by the buyer, who is indirectly fully owned by Mr. Jin Bo, and therefore considered a related party of the company. In accordance with Hong Kong Financial Reporting Standards No. 16, the leased area under the lease agreement will be recognized as a right-of-use asset by the company, and the transaction proposed under the lease agreement will be classified as the company acquiring a right-of-use asset under the listing rules. As the group possesses the machinery, equipment, and technology required for the branded product business, the company will enter into a framework agreement with Hong Kong Bonny after completion, under which the group will provide manufacturing services to the Hong Kong Bonny Group for a period of three years from the completion date.