FSM HOLDINGS (01721) has issued an announcement stating that the company's board of directors has taken note of a news report published on hk01.com on May 13, 2026, concerning a restriction order allegedly issued by the Hong Kong High Court on certain assets of Mr. Li, including some securities of the company (collectively referred to as "the Matter").

The board, having made all reasonable inquiries to the best of its knowledge, hereby clarifies and informs the company's shareholders and potential investors as follows:

(1) Based on the information currently available to the company, neither the company nor any other member of the group is a respondent, defendant, or party to the legal proceedings mentioned in the report. Apart from Mr. Li's interests in the company as a controlling shareholder (as disclosed in the sanction announcement and other public disclosures of the company), to the best of the board's knowledge after making all reasonable inquiries, no director, senior management, or employee of the group is involved in any conduct or activities related to the Matter.

(2) As indicated in the report, the Matter primarily involves Mr. Li's personal assets and not any assets, business, or operations of the group. The impact of the Matter, if any, on the group's business operations and financial condition remains to be assessed.

(3) Other than the disclosures made in this announcement, the sanction announcement, and other announcements published by the company on the website of The Stock Exchange of Hong Kong Limited, the board is not aware of any other matters related to the Matter that constitute inside information of the company requiring disclosure under the inside information provisions.

The company will continue to monitor developments regarding the Matter and will issue further announcements at the appropriate time in accordance with the Listing Rules and other applicable laws and regulations.