China In-Tech Limited (the Group) released an update regarding its efforts to address the going concern disclaimer highlighted in its annual report for the year ended 31 March 2025. The update outlines several initiatives aimed at improving the Group’s liquidity and financial position.

According to the announcement, the Group has continued discussions with various banks and financial institutions, although no significant progress has been made to date. In July 2025, a new shareholder’s loan agreement was signed, allowing up to HK$5 million in further loan advances when financial needs arise. No incidents of default have occurred, and there have been no legal actions taken against the Group.

The Group is also in negotiation with potential investors to explore additional fundraising opportunities and intends to proceed with a new round of placing shares by the end of 2025. In terms of cost control, the electrical haircare appliance segment has implemented measures such as optimizing human resources and freezing salary levels. As a result, the number of employees in that segment has decreased from 311 as of 31 March 2025 to 292 as of the announcement date.

The Group states that it currently has sufficient cash flow to meet its obligations for the next twelve months and continues to explore various measures to resolve the going concern issue. It plans to provide further updates in compliance with relevant listing requirements. Figures cited are based on internal data and may differ from eventual audited or unaudited consolidated financial statements due to uncertainties during the data collection process.