Xtep International Holdings has activated a Scrip Dividend Scheme for the FY2025 final dividend, offering shareholders the choice between a cash payment of HK$0.095 per share and new fully-paid shares issued at HK$4.200 each.

Key terms • Record date: 18 May 2026. • Election deadline: 4:30 p.m. on 10 June 2026. • Despatch of dividend warrants and share certificates: 30 June 2026. • First trading day of scrip shares: 2 July 2026 (subject to listing approval).

Exchange ratio The number of scrip shares is determined by dividing the cash dividend foregone by the average closing price of HK$4.200 recorded for the three trading days to 18 May 2026. Fractional entitlements will be paid in cash.

Potential impact on share capital • Shares in issue at record date: 2,806.07 million. • If 100% of shareholders take cash: cash outflow totals HK$266.58 million. • If 100% elect scrip: up to 63.47 million new shares will be issued, expanding the share base by approximately 2.21%.

Convertible bonds No conversion has occurred to date on the three outstanding bonds: 1. CB I – HK$542.09 million, convertible into 68.29 million shares. 2. CB II – HK$526.83 million, convertible into 100.69 million shares. 3. CB III – HK$500.00 million, convertible into 78.49 million shares (conversion price may adjust upon scrip issuance).

Conditions Implementation of the scheme requires approval for listing and dealing in the scrip shares from the Hong Kong Stock Exchange. If approval is not granted, the entire dividend will be paid in cash.

Geographical eligibility Shareholders outside Hong Kong may participate only if local regulations permit. PRC southbound investors can elect scrip through ChinaClear; one PRC-registered shareholder holding 460 shares may also participate, with no legal impediment identified.

Rationale The scheme allows investors to increase holdings without incurring transaction costs while retaining cash within the company for operational use.