Xtep International (01368) has announced that, pursuant to Clause 8E (Purchase) of the Terms and Conditions of its 2025 Convertible Bonds, the company or any of its subsidiaries may, subject to applicable laws and regulations, purchase the 2025 Convertible Bonds at any time and from time to time in the open market or otherwise at any price. The company proposes to repurchase the 2025 Convertible Bonds based on the aforementioned terms and conditions. On January 30, 2026, the company entered into a Dealer Manager Agreement with a dealer manager, who has been appointed to handle the proposed concurrent repurchase matters, which includes assisting the company in collecting letters of intent from holders of the 2025 Convertible Bonds who may be willing to sell their holdings to the company.

The company plans to issue convertible bonds (the Bonds) to institutional investors. It has appointed arrangers to coordinate the pricing for the proposed bond issuance. Once the final terms of the Bonds, including the issue size, issue price, and other conditions, are determined, the arrangers will enter into a subscription agreement with the company for the proposed bond offering. The Board of Directors believes that by proceeding with the concurrent repurchase and the bond issuance, the company will be able to extend its debt maturity profile.

Furthermore, the proposed bond issuance offers the following additional benefits: it provides the company with additional funds at a lower financing cost to finance the concurrent repurchase, with the remaining balance to be used for general corporate purposes; it will not cause immediate dilution to the shareholding percentages of existing shareholders; and it will strengthen the company's capital base and facilitate its long-term development upon the conversion of the bonds into new shares.