Shareholders of Huandafu Holdings (01348) transferred shares from Gaocheng Securities to settled securities with a market value of HK$120 million

The Zhitong Finance App learned that the latest data from the Hong Kong Stock Exchange shows that on December 5, shareholders of Huandafu Holdings (01348) transferred shares from Gaocheng Securities to Settlement Securities, with a market value of HK$120 million, accounting for 49.05%.

Fong Tat Fu Holdings issued an announcement on December 4. According to the Chairman, Executive Director and major shareholder Mr. Pan Pak Kei (Mr. Pan), the company Silver Pointer Limited (Silver Pointer), which is wholly owned by Mr. Pan; Smart Investors Limited (Smart Investor), the controlling shareholder of the company and a company in which Mr. Lau Ho-ming holds approximately 67.4% of the shares and Ms Lee Min-yee holds approximately 32.6% of the shares; and Benefit Global Limited (Benefit Global) (collectively, the “shareholder”), which is wholly owned by Mr., entered into a Memorandum of Understanding (MOU) with an independent third party (potential buyer) on October 10, 2025 regarding the possible sale of 762 million shares held by the shareholder, accounting for approximately 51.70% (potential transaction) of the Company's total issued share capital at the date of this announcement.

The potential buyer, Yael Capital Management Limited, is a limited company incorporated in the British Virgin Islands, mainly engaged in investment holdings. The potential buyer is wholly owned by Mr. Liu Chong.

A potential transaction is subject to further negotiations and the signing of a formal sales agreement between the parties before it can be realized. According to the MOU, shareholders selling shares shall not directly or indirectly negotiate or agree with any other party on a potential transaction from the date of the MOU until December 9, 2025 (including that date) (exclusive period). According to the terms of the MOU, the potential buyer is entitled to conduct a due diligence (due diligence review) of the Group on or before December 9, 2025 and complete that review.

According to the memorandum of understanding, the potential buyer has agreed to pay HK$7.8 million (interest deposit) as a deposit, and an equal amount of the amount will be deposited in cash into the bank accounts of the shareholder and the prospective buyer's respective designated attorney in accordance with the escrow agreement between the potential buyer and the shareholder (as custodian agent). Intent payments are due (and have been made) within 3 business days of signing the MOU. If the parties fail to sign a formal agreement at or before the expiration of the exclusivity period, the interest fee will be refunded to the potential buyer in certain circumstances.