According to the Zhitong Finance App, Chaowei Holdings (08059) announced that on October 30, 2026, the lessee Liancheng Automobile Co., Ltd. (an indirect subsidiary of the Company) signed a lease agreement with the lessor Lichuang Development Co., Ltd., to lease the property for a fixed period of 14 months, from November 1, 2026 to December 31, 2027 (including the first and last two days) to operate one of the Group's automobile retail businesses. The property is a workshop B3 to B7 on the ground floor of Block B, Hongli Industrial Centre, 6 Wang Kwun Road, Kowloon, Hong Kong.
The company is mainly engaged in providing concrete dismantling services and manufacturing and trading prefabricated building components. To broaden its revenue streams and enhance long-term growth prospects, the Group is actively exploring opportunities to diversify its business portfolio by expanding into the automotive business.
As part of this strategic move, the Group has established a subsidiary in Hong Kong to engage in automotive retail business. This business model involves purchasing cars directly from manufacturers, authorized producers or authorized distributors and selling them to end customers in the Hong Kong market. The Board believes that expanding into the automotive retail business will enable the Group to diversify its revenue sources, strengthen its market influence, and create additional value for shareholders in the long term.
As the Group expands its automobile retail business, it is necessary for the Group to find suitable properties for business operations and vehicle storage. Therefore, the Group has entered into a lease agreement for the property to operate the automobile retail business, including the display, storage and sale of automobiles. The directors believe that entering into a lease agreement will facilitate the development of the Group's new business division, and that the terms of the lease agreement are fair and reasonable, and conform to the overall interests of the Company and its shareholders.