Diwang Industrial sells further stake in Darkblue Investment for RMB29.86m

Diwang Industrial Holdings Limited announced the Second Disposal of a 24% interest in its subsidiary, Darkblue Investment Ltd., to an independent third party for RMB29,860,000. This follows a previous 25% disposal. Combined, these aggregated disposals represent a major transaction. Upon completion, Diwang Industrial's stake in Darkblue Investment will be reduced from 75% to 51%, but it will remain a subsidiary, and its financial results will continue to be consolidated.

The RMB29,860,000 purchase price, determined by an independent valuation using a market approach, will be paid in installments. The proceeds will be used for debt repayment, investment in new business opportunities, and general working capital. The Second Disposal is expected to be accounted for as an equity transaction without immediate recognition of gain or loss.

The transaction is conditional on customary conditions, including obtaining shareholders' approval. A circular with further details, including a valuation report of Zhejiang Sunlight (Darkblue Investment's indirect wholly-owned subsidiary), and a notice of the EGM, is expected to be despatched to shareholders on or before 2 December 2025.