On January 6, 2026, the Company entered into a debt settlement deed with China Ruike. The Company has agreed to allot and issue, and the creditor has agreed to subscribe for, 1.975 million new shares in the Company's share capital to fully and finally settle the entire outstanding debt of RMB 5.057 million as of the announcement date.

The settlement price per share is HK$2.84. This issue price represents a discount of approximately 15.73% to the closing price of HK$3.37 per share as quoted on The Stock Exchange of Hong Kong Limited on the date of the debt settlement deed.

The outstanding debt owed to the creditor is non-interest bearing, has been outstanding since 2017, and was classified as a current liability.

The Directors believe that settling this outstanding debt through the issuance of settlement shares will eliminate the liability without any immediate cash outflow, thereby strengthening the Group's balance sheet and improving its debt-to-asset ratio. This action also demonstrates the creditor's continued confidence in and commitment to the Group's long-term prospects.

No cash proceeds will be raised from the issuance of the settlement shares, as they will be used to fully settle the entire outstanding debt of RMB 5.057 million.