CHONG FAI JEWEL (08537) announced that the board of directors adopted a share award scheme on March 19, 2021. As of the date of this announcement, no eligible participants have been granted any awards.

Given that the trustee holds 1.063 million shares of the company that were purchased under the share award scheme but have not yet been awarded as of the announcement date, and the company does not intend to grant further awards under the share award scheme in the next financial year, and considering that the company granted a share option scheme on July 31, 2025 to provide incentives or rewards to eligible participants in recognition of their contributions to the group's growth and development, the board has resolved to terminate the share award scheme effective August 1, 2025, in order to reduce the company's administrative costs.

Following the termination of the share award scheme, the trustee shall, upon receiving notice of disposal, sell all remaining shares in the share pool within one year (or such longer period as may be agreed between the trustee and the company, or as the company may otherwise determine) and remit to the company all cash and net proceeds from such disposal as well as other remaining funds in the share pool (after appropriate deductions for all disposal costs, expenses and other existing and future liabilities in accordance with the trust deed).