On 5 February 2026, Vala Inc. (Stock Code: 2051) reported entering into a Settlement Agreement involving Hangzhou Enniu, Hangzhou Zhenniu, Hangzhou Shangniu, Mr. Yang, the Yang Related Entities, and members of the SK Group. The agreement aims to resolve disputes linked to Shouhui Kaizhuo, a subsidiary whose control the group had lost operationally in August 2022.

Under the settlement, the Group seeks to relinquish beneficial ownership of the original 53.975% equity interest in Shouhui Kaizhuo previously acquired from Mr. Yang and his affiliates. The Group also obtains an Economic Benefit tied to a 12.9365% stake in Shouhui Kaizhuo, contingent upon final approval. Additionally, partial repayment of RMB8,133,224.61 is stipulated for outstanding loans to the SK Group, with the remaining balance largely waived in exchange for lifting certain enforcement orders.

Financial data indicate that Shouhui Kaizhuo recorded audited net losses of RMB120.26 million for 2023 and RMB12.84 billion for 2024 based on PRC accounting standards. As at 30 November 2025, Shouhui Kaizhuo’s unaudited consolidated total assets reached approximately RMB177.5 million with net liabilities of around RMB110.6 million. The settlement arrangement, including a possible sale of Shouhui Kaizhuo’s entire equity interests, is intended to recoup part of the Group’s earlier investments and outstanding debts.

Pursuant to Chapters 14 and 14A of the Listing Rules, the Settlement Agreement is classified as a discloseable and connected transaction, prompting requirements for reporting, announcement, and independent shareholders’ approval. The Company will convene an extraordinary general meeting for the independent shareholders to vote on the settlement. A circular outlining further information and related documents is planned for dispatch on or before 3 March 2026.