BROAD HOMES (02163) announced that its board of directors convened the first meeting of the fourth board of directors on October 9, 2025, approving a proposal for the company to voluntarily apply for bankruptcy reorganization.

In recent years, the company has been deeply mired in debt and operational crisis due to macroeconomic conditions, real estate regulatory controls, and pandemic impacts. Despite implementing multiple self-rescue measures, the results have been limited, and various risks have now been fully exposed and continue to intensify.

According to the relevant provisions of the Company Law of the People's Republic of China and the Enterprise Bankruptcy Law of the People's Republic of China, given the company's operational difficulties, its inability to repay creditors' due debts, and obvious lack of solvency capacity, the company meets the conditions stipulated in Articles 2 and 7 of the Enterprise Bankruptcy Law and qualifies for reorganization.

The company possesses substantial technical reserves, high industry standing, and strong brand influence in the prefabricated construction sector, demonstrating reorganization value. As a Hong Kong Stock Exchange-listed company, it has certain platform resource advantages and is expected to introduce quality strategic investors through reorganization, resolve debt risks, further enhance core competitiveness, and better create value for shareholders, employees, and society.

Based on these considerations and the company's actual operational needs, following the principles of prudence, appropriateness, and necessity, and in accordance with the Enterprise Bankruptcy Law and the Articles of Association of Changsha BROAD Homes Industrial Group Co., Ltd., the company plans to voluntarily apply for bankruptcy reorganization with the Changsha Intermediate People's Court.

The company will convene a shareholders' meeting in due course to review the proposal for voluntary bankruptcy reorganization application. As of the announcement date, there remains significant uncertainty regarding whether the bankruptcy reorganization application will be accepted by the court and whether the company will enter the reorganization process.

The company will inform shareholders and investors of any material developments regarding the pre-reorganization application and will make separate announcements in accordance with listing rules at appropriate times.