TK Group scraps Vietnam land deal due to shifting business direction

TK Group (Holdings) announced the termination of a Letter of Intent to acquire land use rights in Phuc Dien Extended Industrial Park, Hai Duong Province, Vietnam. The LOI, entered into on May 30, 2025, involved a total consideration of approximately HK$26.76 million.

The decision to terminate stems from a change in the group's business direction, influenced by the impact of tariff situations between Vietnam and its international partners. A termination agreement was signed on August 20, 2025.

Under the termination agreement, the seller will return the deposit paid by TK Group's subsidiary by November 30, 2025. This refund will be net of direct and indirect expenses, including bank charges, taxes, and administrative fees. Following this, neither party will bear further liability for costs or financial obligations related to the LOI.

The board of directors considers this termination to be in the ordinary course of business and in the best interests of shareholders, anticipating no material impact on the company's existing business operations or financial position. As the original proposed acquisition's percentage ratios did not exceed 5%, the LOI's termination does not constitute a notifiable transaction under Chapter 14 of the Listing Rules.