Sunfonda Group disposes of target company in major transaction

Sunfonda Group Holdings Limited (HKEX: 1771) announced the disposal of its entire equity interest in the Target Company, Xi'an Sunfonda Jing River Logistics Development Co., Ltd., in a major transaction. The purchaser, Xi'an Zhongyu Real Estate Co., Ltd., will pay a revised initial transfer price of RMB71.1372 million, reflecting adjustments due to a reduction in the developable area of the Target Property from 33,654.8 sq.m. to 28,520 sq.m. The disposal aims to enhance asset utilization and improve the Group's financial position by focusing on its core motor vehicle sales and service business in the PRC. The group expects to realize an unaudited gain of approximately RMB51.14 million, and intends to allocate 72% of the proceeds to automobile procurement, 8% to spare parts, and 20% to operations.