On July 28, 2026, Zhejiang Muhua Home Furnishing Co., Ltd. (Muhua Home Furnishing), a wholly owned direct subsidiary of Regal Partners (01575), received a written notice from the Haining City People's Court (Haining Court).

According to the notice, Jiaxing Nata Li Trading Co., Ltd. filed an application with the Haining Court to place Muhua Home Furnishing into bankruptcy liquidation, citing Muhua Home Furnishing's failure to pay its outstanding debts.

Muhua Home Furnishing is a limited liability company established in China. In recent years, the group has relocated its primary production facilities to the Kingdom of Cambodia. Since October 2025, Muhua Home Furnishing has had no operations.

Following the group's strategic relocation of its core production base from China to Cambodia in 2024, the group's production facilities are now mainly located in Cambodia.

The company's directors believe that the notice and the potential bankruptcy liquidation of Muhua Home Furnishing will not have any material adverse impact on the group's overall operations. The company has engaged its Chinese legal counsel to assist with the legal proceedings related to the notice and the potential bankruptcy liquidation of Muhua Home Furnishing.