The Board of Kato (Hong Kong) Holdings Limited announced that on 21 May 2021 the Purchaser, an indirect wholly-owned subsidiary of the Company, entered into the Agreement with the Vendor in relation to the acquisition of the Lands at a cash consideration of HKD 65 million. It is intended that the Group will develop a new building at the Lands for a proposed RCHE. Having considered the surge in available properties in the market and significant decrease in property prices, the Board is of the view that instead of leasing from third parties for the operation of care and attention homes of the Group, acquisition of a suitable property and establishment of a care and attention home is in the best interest of the Company and the Shareholders. The Acquisition is considered by the Directors to be beneficial to the Group as the Group expects to develop a new building at the Lands and establish a care and attention home in the new building. Taking into account the above factors, the Directors consider that the terms of the Agreement (including the consideration) are on normal commercial terms, fair and reasonable and the Acquisition is in the interests of the Shareholders and the Company as a whole. The Group is an established operator of residential care homes for the elderly in Hong Kong offering a wide range of residential care services for the elderly including (i) the provision of accommodation, professional nursing and care-taking services, nutritional management, medical services, physiotherapy and occupational therapy services, psychological and social care services, individual care plans and recreational services; and (ii) the sale of healthcare and medical goods and the provision of add-on healthcare services to the residents. The Purchaser, which is a wholly-owned subsidiary of the Company, is a company engaged in investment holding. To the best of the Directors' knowledge, information and belief having made all reasonable enquiries, (i) the Vendor and its ultimate beneficial owners are Independent Third Parties; and (ii) the Vendor is a company incorporated in Hong Kong with limited liability, and is principally engaged in property investment.