China Star Group (00326) announced that Heung Wah Keung Family Endowment Limited, the company's controlling shareholder jointly held by Chairman and Executive Director Mr. Heung Wah Keung and Ms. Chan Ming Ying (Mr. Heung's spouse and Vice Chairperson and Executive Director of the company), sold a total of 81 million company shares on the open market through on-exchange transactions on The Stock Exchange of Hong Kong Limited between December 15, 2025, and December 22, 2025. Following the share sale, the shareholding percentage of Heung Wah Keung Family Endowment Limited in the company decreased from approximately 67.53% to approximately 64.20%. Based on the above circumstances and taking into account the share sale, the company considers that the issue of high shareholding concentration described in the SFC announcement has been resolved. Furthermore, the high shareholding concentration of the company as of June 27, 2025, detailed in the SFC announcement should not be used as a basis for assessing the current status of the company's shareholding structure.