RS MACALLINE (Red Star Macalline Group Corporation Ltd.) plans to request shareholder approval for a new guarantee mandate of up to RMB 7.50 billion to cover the financing needs of its subsidiaries during the 12-month period following the forthcoming general meeting.

Key points

1. Purpose and scope • The mandate will allow the parent company and its subsidiaries to issue additional guarantees—both parent-to-subsidiary and inter-subsidiary—between the approval date of the 2026 AGM and the next AGM that will consider the 2027 quota (maximum 12 months). • Allocation can be flexibly adjusted among subsidiaries, provided that guarantees are reallocated within the same gearing-ratio category (below 70 % or 70 % and above).

2. Proposed allocation of new guarantees (RMB, converted to billions) • Subsidiaries with gearing <70 %: total planned cap of about RMB 3.50 billion, including Beijing Red Star Macalline International Furniture & Building Materials Plaza (≈ 1.00 billion) and Harbin Red Star Macalline International Home Furnishing (≈ 0.60 billion). • Subsidiaries with gearing ≥70 %: total planned cap of about RMB 3.70 billion, led by Shanghai Xinwei Property (≈ 2.50 billion) and Shanghai Hongxin Ou Kai Home Furnishing (≈ 0.40 billion). • Combined ceiling corresponds to RMB 7.20 billion in detailed subsidiary allocations; the umbrella mandate allows up to RMB 7.50 billion, providing buffer for future adjustments.

3. Existing guarantee exposure • As of 30 July 2026, the Group’s accumulated guarantees stood at RMB 22.25 billion—equivalent to 98.76 % of the parent company’s audited net assets as at 31 Dec 2025. • Guarantees extended directly to subsidiaries total RMB 20.55 billion (91.23 % of 2025 year-end parent net assets). • The Group reports no guarantees to substantial shareholders, de facto controllers or other connected persons, and no overdue guarantees.

4. Snapshot of key guaranteed subsidiaries (unaudited 31 Mar 2026) • Shanghai Xinwei Property: assets RMB 4.12 billion, liabilities RMB 3.70 billion, net assets RMB 0.41 billion; 1Q26 net profit RMB 21.08 million. • Beijing Red Star Macalline Plaza: assets RMB 2.60 billion, net assets RMB 0.86 billion; 1Q26 net profit RMB 10.86 million. • Shenyang Red Star Macalline Shibo: gearing above 70 %, net loss of RMB 0.87 million in 1Q26 on assets of RMB 0.65 billion. • Urumchi Red Star Macalline Shibo: net loss of RMB 12.94 million in 1Q26 on assets of RMB 0.85 billion.

Next steps

The proposed guarantee mandate and related authorisations will be submitted to shareholders for approval at the upcoming general meeting. The mandate is required under Shanghai Stock Exchange rules and does not trigger disclosure or approval obligations under Chapters 13, 14 or 14A of the Hong Kong Listing Rules.