The Board of Elegance Optical International Holdings Limited announced that on 4 January 2024 (after trading hours), the Vendor, being a wholly-owned subsidiary of the Company, entered into the Provisional Sale and Purchase Agreement with the Purchaser, pursuant to which the Vendor has agreed to dispose of and the Purchaser has agreed to purchase the Property at the consideration of HKD 9.1 million. As the relevant percentage ratios (as defined under the Listing Rules) in respect of the Disposal exceed 5% but are under 25%, the Disposal constitutes discloseable transaction of the Company and is therefore subject to the announcement requirement as set out in the Listing Rules but is exempt from Shareholders' approval requirement under the Listing Rules. The Company intends to use the net proceeds from the Disposal for business development and as general working capital of the Group.

The principal activity of the Company is investment holding. The Group was engaged in the trading of optical frames and sunglasses, property investment, investment in debts and securities and film right investment and film distribution business and energy business. To the best of the Directors' knowledge, information and belief having made all reasonable enquiries, the Purchaser is an investor.

Taking into account of the current financial position and business operation of the Group, the Directors believe that the Disposal represents a good opportunity for the Company to realise the value of the Property at a reasonable price and the proceeds from the Disposal will improve the financial position and increase the general working capital of the Group". The Board considers that the terms and conditions for the Disposal are on normal commercial terms, which are fair and reasonable and in the interest of the Company and its Shareholders as a whole. As the relevant percentage ratios in respect of the Disposal exceeding 5% but are under 25%.

the Disposal constitutes discloseable transactions of the Company and is therefore subjects to the announcement requirement as set up in the Listing Rules but are exempt from Shareholders' approval requirements under the Listing Rules.