Sunshine Oilsands acquires 51% interest, provides profit forecast

Sunshine Oilsands Ltd. is acquiring a 51% equity interest in an undisclosed target company, a transaction that involves the issuance of consideration shares under a specific mandate. The valuation of the target company, as at August 1, 2025, was conducted by LCH (Asia-Pacific) Surveyors Limited using a discounted cash flow (DCF) approach, which constitutes a profit forecast under HKEX Listing Rules.

The valuation concluded the full equity of the target company to be HK$100,000,000, making the value of the 51% equity interest HK$51,000,000. Key assumptions for the DCF valuation included a discount rate of approximately 11.5%, a long-term growth rate of 2% per annum, and a standard corporate income tax rate in China of 25%. A Discount of Lack of Marketability (DLOM) of 26% was also applied.

The board of directors confirmed that the profit forecast was made after due and careful enquiry. Prism Hong Kong Limited, the reporting accountant, performed an assurance engagement on the calculations of the discounted future estimated cash flow forecast and confirmed they were properly compiled in all material respects in accordance with the assumptions adopted by the directors.