KINGKEY FIN INT plans to sell all issued share capital of Trade Region Limited for HKD 10 million
KINGKEY FIN INT announced plans to sell all issued share capital of its wholly-owned subsidiary Trade Region Limited for HKD 10 million, with the buyer being Scandinavia Agricultural A/S Limited. This decision comes after the target company's fur business faced a significant loss of approximately HKD 27 million in the fiscal year 2025. The board has decided to shift its focus to other profitable areas, particularly in finance, sustainability, and technology industries, to mitigate related risks and seek growth opportunities
According to the announcement from KINGKEY FIN INT (01468), on September 30, 2025, the company entered into an agreement with the buyer Scandinavia Agricultural A/S Limited. Under the agreement, the company conditionally agrees to sell, and the buyer conditionally agrees to purchase the shares for sale (equivalent to the entire issued share capital of the target company Trade Region Limited), for a total consideration of HKD 10 million.
As of the date of this announcement, the target company wholly owns UKF(Denmark) A/S, Loyal Speed Limited, and UK Fur Limited. UKF(Denmark) A/S is a limited company registered in Denmark, primarily engaged in the breeding of minks in Denmark. Loyal Speed Limited and UK Fur Limited are both limited companies registered in the British Virgin Islands. Loyal Speed Limited specializes in providing fur brokerage and financing services in Hong Kong, while UK Fur Limited is mainly involved in fur trading in the Hong Kong market.
Following the company's announcement of its annual results for the fiscal year ending March 31, 2025, the board noted that the fur business segment under the target group incurred a significant loss of approximately HKD 27 million during the year, a substantial increase from the reported segment loss of approximately HKD 3.6 million for the fiscal year ending March 31, 2024. The revenue of the fur business has continued to decline, primarily due to adverse impacts from changes in Danish policies, including a temporary ban on mink breeding and farming extended to 2023. As a result, the operations of the fur business have been significantly affected, and performance has not met expectations.
In light of these challenges, the group has implemented a strategic shift by gradually redirecting its focus to other profitable and mature areas to mitigate risks associated with this business segment. The board is strategically prioritizing the advancement of financial-related business areas, aiming to expand the existing portfolio and explore new avenues with growth potential. Given the global emphasis on environmental, social, and governance (ESG) initiatives, the group is actively seeking collaboration opportunities in finance, sustainable development, and technology industries.
Therefore, the board believes that the sale will enable the group to allocate additional resources to enhance its financial services while also strengthening its focus on collaboration in sustainable development and technology, thereby seizing emerging business opportunities. Additionally, the board intends to use the proceeds from the sale to support the development of the group's financial business. After a comprehensive assessment of the financial performance of the target group and the terms of the agreement, the board believes that the sale is conducted on normal commercial terms and is in the overall best interests of the company and its shareholders
