Favour King Holdings Limited entered into non legally binding letter of intent to acquire Winfield Innovations Limited from AVIC Joy Holdings (HK) Limited (SEHK:260) for HKD 40.9 million on December 10, 2018. Favour King Holdings Limited entered into share transfer agreement to acquire Winfield Innovations Limited from AVIC Joy Holdings (HK) Limited (SEHK:260) for HKD 40.9 million on July 12, 2019. Under the terms of the agreement, Favour King Holdings Limited paid approximately HKD 2.5 million, approximately HKD 4.6 million and approximately HKD 5.3 million on December 10, 2018, December 11, 2018 and March 20, 2019, respectively, assumed HKD approximately 23.2 million obligations to repay the debts by Favour King Holdings and approximately HKD 5.3 million payable prior to the completion date. Upon the completion of the transaction, company will cease to hold any interest in Winfield Innovations Limited. Winfield Innovations generated the net loss after tax of HKD 4.6 million for the year ended December 31, 2018 and net asset value of approximately HKD 38.56 million. The transaction is subject to approval of shareholders of AVIC Joy Holdings and due diligence investigation, governmental and regulatory authorities. The transaction has been approved by the Board of Directors of AVIC Joy Holdings (HK) Limited. On September 12, 2019, the transaction was approved by the shareholders of the AVIC Joy Holdings (HK) Limited. AVIC Joy Holdings is expected to receive net proceeds of approximately HKD 17.35 million from the transaction and is intends to apply the net proceeds as the general working capital of Winfield Innovations. Long stop date of the transaction is September 30, 2019. China Alliance Appraisal Co., Ltd acted as valuer in transaction.