SC Holdings (South China Holdings Company Limited) has completed the disposal of two contiguous industrial land parcels and associated plant buildings in Qingxi Town, Dongguan, to Dongguan City Yanyuan Supply Management Ltd. for RMB 290 million (approximately HK$318.70 million). The assets comprise 132,727.92 sq.m. of land and 102,388.26 sq.m. of gross floor area, including factories, warehouses, dormitories and ancillary facilities erected between 1998 and 2013.

The consideration, set with reference to an independent valuation of RMB 280 million, was settled in six tranches between December 2025 and March 2026 and has been fully received. Completion occurred on 31 March 2026; the group now holds no interest in the property.

Financially, the transaction is expected to deliver a net gain of approximately HK$200.80 million, calculated as the difference between the consideration and the asset’s carrying value of HK$59.40 million plus deferred-tax reversal of HK$9.10 million, less related tax expenses of HK$67.60 million.

Gross proceeds of HK$318.70 million are earmarked as follows: HK$67.60 million for taxes, HK$142.90 million for bank-loan repayment, HK$53.50 million for staff costs, HK$24.70 million for trade payables and HK$30.00 million for general working capital. Post-transaction, total assets decrease by HK$29.40 million while total liabilities fall by HK$230.20 million.

The board cited falling U.S. orders, higher input costs and renminbi appreciation as reasons for disposing of the asset, which had become unprofitable to operate. Remaining toy-manufacturing facilities will be monitored and, if required, the group may shift to a trading-focused model. No shareholder vote was needed; 61.23% shareholder Mr. Ng Hung Sang approved the deal by written consent under Listing Rule 14.44.

Independent valuer Graval Consulting confirmed the valuation methodology, and the company’s PRC legal advisers affirmed valid title. The disposal qualifies as a major transaction under Hong Kong Listing Rules.