ELIFE HLDGS (00223) announced that on March 17, 2026, the seller, Zhongnongxin Supply Chain Management (Beijing) Co., Ltd., an indirect wholly-owned subsidiary of the company, entered into a share transfer agreement with the buyer, Meizhou Yichanglong Logistics Co., Ltd. The buyer has agreed to acquire the entire equity interest of the target company for a total consideration of RMB820,000. Upon completion of the transaction, the target company, Guangdong Shangpinhui Supply Chain Management Co., Ltd., will cease to be a subsidiary of ELIFE HLDGS, and its financial results will no longer be consolidated into the group's financial statements.

To achieve its strategic objectives, the group has been actively reallocating resources away from its traditional supply chain operations to focus on core growth areas. These include brand supply chain businesses that are deeply integrated with business travel applications and artificial intelligence products. This strategic shift is particularly evident in the group's recent business initiatives and partnerships related to digital technology and AI.

The target company is primarily engaged in traditional supply chain business involving fruits, agricultural products, and beverage raw materials. In recent years, these segments have faced intensifying market competition and narrowing profit margins, making it increasingly difficult for the target company to achieve sustainable growth or contribute meaningfully to the group. As of September 30, 2025, the target company was in a net liability position, with liabilities amounting to approximately HK$2.7 million.

In light of the above, the board of directors believes that the target company's operations and industry positioning have become increasingly misaligned with the group's latest strategy and future business direction. The disposal presents a timely and strategic opportunity for the group to divest a non-core and underperforming business, thereby further streamlining operations by reallocating capital and management focus towards core businesses with higher growth potential.

The net proceeds from the disposal, after deducting related expenses, are intended to be used as general working capital for the group. Following the completion of the disposal, an improvement in the group's liquidity and financial position is anticipated, while allowing the group to concentrate more effectively on its core operations.