S. DRAGON (08493) announced that on August 7, 2026, it was informed by its legal counsel that its indirect wholly-owned subsidiary, Capacity Limited (Capacity), was ordered to be wound up by the High Court of Hong Kong on August 5, 2026, pursuant to a winding-up order (the Order).

David Ma Tak Man and Wong Kwok Keung of KLC Corporate Advisory Co., Limited have been appointed by the Official Receiver as joint and several provisional liquidators of Capacity.

The Order was made in response to a winding-up petition (the Petition) filed by Li Tin Sung against Capacity on May 14, 2026, under the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Chapter 32 of the Laws of Hong Kong).

Before August 5, 2026, the Company was not aware of the Petition at the relevant time, only first learning of it during routine legal searches conducted during the preparation of the Group's interim results for the six months ended June 30, 2026. Upon becoming aware of the matter, the Company immediately sought advice from its advisors.

The Company's shares remain suspended from trading.