Wu Hui entered into an agreement to acquire 51% stake in Red Rabbit International Technology Inc. from Kirin Group Holdings Limited (SEHK:8109) for HKD 16.1 million on December 27, 2018. Under the terms of the agreement, Wu Hui will acquire 0.026 of Red Rabbit International Technology Inc. for HKD 3.8 million in cash of which HKD 0.3 million will be paid within five business days from the date of signing agreement and the remaining balance of HKD 3.5 million shall be satisfied within three months from the completion date. As part of the transaction, Wu Hui will assume HKD 12.32 million of debt of Red Rabbit International Technology on completion. Post completion, Red Rabbit International Technology will cease to be a subsidiary of Kirin Group Holdings Limited. Red Rabbit International Technology reported revenues of HKD 8.9 million and profit after tax of HKD 3.7 million for the year ended June 30, 2018. The transaction is subject to Wu Hui approving the transaction and the Board of Kirin Group Holdings Limited approving the transaction. The conditions are expected to be fulfilled by January 18, 2019 (Long Stop Date). Completion shall occur within 14 Business Days after all the conditions precedent under the agreement are being satisfied. The net proceeds will be used for general working capital of Kirin Group Holdings and funding of any potential investments available to Kirin Group Holdings in future.