Weiqiao Textile Company has entered into a property transfer agreement with Shandong Zouping Kaida Real Estate Development (Zouping Kaida), pursuant to which Weiqiao Textile agreed to transfer to Zouping Kaida properties situated at Zouping Economic Development Zone, Shandong Province, the PRC for RMB689 million (HK$840.244 million).

The directors of Weiqiao Textile consider that the group will realize a gain of RMB515.631 million (HK$628.818 million) (subject to audit) from the disposal. As the floor area of the buildings comprising the properties only accounted for 8.7% of the group's total floor area, the disposal is not expected to have a significant adverse effect on the operations of the group.