SILKWAVE INC (00471) announced that on April 22, 2026, the company was notified by its major shareholder, Chi Capital Holdings Ltd (CCH), that it had failed to repay a loan as required under the terms of a loan agreement between CCH (as borrower) and an independent third-party lender. Prior to the forced sale, CCH directly and indirectly held 70.7795 million shares, representing approximately 12.68% of the company's issued share capital. The loan was secured by a share charge over certain shares of the company held by CCH. Following the failure to repay the loan, the company was notified that on April 21, 2026, the lender had conducted a forced sale of 53.287 million pledged shares, representing approximately 11.10% of the company's issued share capital. Following this forced sale and as of the date of this announcement, CCH's shareholding in the company has decreased to approximately 1.58%. Furthermore, after a significant drop in the share price during the trading session on April 22, 2026, approximately 24.352 million shares held by Executive Director Mr. Zou Yifeng were also forcibly sold on the same day. After this sale, Mr. Zou holds 12.2383 million shares, representing approximately 2.55% of the company's issued share capital. The company's board of directors has noted the recent decline in the share price and the increase in trading volume. The board has conducted a reasonable inquiry into the company's relevant matters and confirms that, aside from the information disclosed in this announcement, it is not aware of any other reasons for the share price and trading volume movements. It is also not aware of any information that must be disclosed to prevent a false market in the company's securities, or any inside information that is required to be disclosed under Part XIVA of the Securities and Futures Ordinance. The company has applied to the Stock Exchange for the resumption of trading in its shares, which will commence at 9:00 a.m. on April 23, 2026.