Hin Sang Group (International) Holding Co. Ltd. has agreed to sell its Shatin Industrial Centre property to Tian Cheng Enterprises Holdings Ltd. for HK$98.00 million in cash, according to a provisional agreement signed on 11 September 2026 after market close. The disposal qualifies as a major transaction under Hong Kong Listing Rules, triggering shareholder approval at an extraordinary general meeting; a circular is scheduled for dispatch by 2 October 2026.

The asset comprises Workshops 1–19 on the fifth floor of Block A, two adjacent flat roofs, and one car-parking space at Shatin Industrial Centre, totaling roughly 20,840 sq ft of saleable area. An independent valuer assessed the property at HK$120.40 million as of 31 March 2026, placing the agreed price at an 18.6% discount to that valuation.

Payment terms stipulate: HK$4.90 million initial deposit upon signing, a second HK$4.90 million deposit by 24 September 2026, and HK$88.20 million due on or before 26 January 2027, the targeted completion date. All sums will be held by the Vendor’s solicitors as stakeholder pending discharge of existing mortgages.

Proceeds net of estimated HK$1.50 million in transaction costs are expected to total HK$96.50 million. Approximately HK$85.10 million will retire secured borrowings—HK$29.10 million in mortgage debt and HK$56.00 million in revolving credit—thereby releasing the property’s encumbrances and eliminating related interest expenses currently running at about HK$0.31 million per month. The remaining HK$11.40 million will be earmarked for general working capital—inventory purchases, staff costs, and other operating expenses—within 12 months of completion.

Given the property’s book value of HK$120.40 million at 31 March 2026, the transaction is expected to result in a disposal loss of roughly HK$23.90 million, subject to audit and final completion adjustments. The disposal converts a non-income-generating asset previously used for internal operations into liquidity, bolstering the group’s balance sheet and reducing exposure to floating-rate debt linked to HIBOR. Alternate premises for ongoing operations will be secured prior to completion, and the board does not anticipate material disruption to business activities.