FOLANGSI CO., LTD. on 17 April 2026 signed a conditional agreement with Hongkong Chunhe Investment Ltd. to issue 14.50 million new H shares at HK$6.02 each under its existing general mandate.

Key terms • Issue size: 14.50 million H shares, equal to 4.17% of current share capital and 4.00% post-issue. • Pricing: 2.27% below the 17 April closing price of HK$6.16 and 1.63% below the five-day average of HK$6.12. • Proceeds: gross HK$87.30 million; net HK$86.80 million. • Use of funds: working capital, technology and digital upgrades, expansion of offline service network and electrification initiatives. • Lock-up: subscriber barred from disposing of the new shares for 12 months after completion.

Conditions and timetable Completion requires Stock Exchange approval for listing and other regulatory clearances. If all conditions are not met (or waived) by 31 May 2026, the agreement lapses. Settlement is scheduled within seven business days after conditions are fulfilled.

Impact on capital structure Total shares outstanding will rise to 362.52 million, increasing registered capital to RMB90.63 million. H-share free float will expand from 249.65 million to 264.15 million, lifting the H-share portion of total equity from 71.73% to 72.86%. No shares have been issued under the 20% general mandate since the June 2025 AGM; the current placement consumes 20.84% of the remaining capacity.

Strategic rationale Management views the placement as a means to strengthen liquidity, optimise the capital structure and establish a long-term relationship with the strategic investor.

Shareholders are advised that the placement remains subject to completion conditions and may not proceed. Exercise caution when dealing in FOLANGSI securities.