CA Cultural Technology Group Limited will seek shareholder approval at an extraordinary general meeting scheduled for 27 May 2026 to implement a multi-step balance-sheet overhaul and financing package covering share capital reorganisation, fresh equity and convertible bond issues, and a court-sanctioned debt restructuring scheme.

Share capital reorganisation • Share consolidation: Every 10 existing shares of HK$0.10 par value will be consolidated into one share of HK$1.00. Post-consolidation, the authorised share capital remains HK$500.00 million, but is re-denominated into 500.00 million shares at HK$1.00 each, while issued share capital becomes 118.20 million shares at HK$1.00 (versus 1.18 billion pre-consolidation). • Capital reduction: On the effective date, paid-up capital on each consolidated share will be reduced by HK$0.99, lowering par value to HK$0.01. Issued share capital will shrink from HK$118.20 million to HK$1.18 million, generating a credit of approximately HK$117.02 million that will offset accumulated losses. • Increase in authorised capital: Conditional on the above steps, authorised capital will be lifted from HK$500.00 million (5.00 billion shares at HK$0.10) to HK$10.00 billion, divided into 1.00 trillion shares of HK$0.01 each, providing capacity for future issuances.

Fund-raising initiatives • Share subscription: Kyosei-Bank Co., Ltd. has agreed to subscribe for 530.80 million new shares at HK$0.1772 per share, raising approximately HK$94.06 million. The board is seeking a specific mandate to issue these shares, which will rank pari passu with all other shares in issue. • Convertible bonds: The same investor will subscribe for unsecured convertible bonds with a principal value of HK$25.00 million. A separate specific mandate is requested for issuing conversion shares upon exercise of conversion rights.

Debt restructuring via scheme of arrangement • The company proposes a Creditors’ Scheme under Hong Kong’s Companies Ordinance. Key terms include: – Cash distribution: HK$160.00 million to be paid into a scheme special-purpose vehicle (SchemeCo) for eventual distribution to admitted creditors. – Equity distribution: Issue of 59.00 million new shares, also to SchemeCo, at HK$0.1772 each for creditors’ benefit. • Two “special deal” settlements with certain shareholder-creditors require Takeovers Code consent and separate shareholder approval.

Regulatory clearances Implementation of the above proposals is contingent on: 1. Shareholder approval of the relevant ordinary and special resolutions. 2. High Court approval and registration of the solvency statement and minute in the Cayman Islands. 3. Listing Committee approval for new shares and conversion shares. 4. Executive of the Securities and Futures Commission consent for whitewash waiver and special deal arrangements.

Implications Management expects the capital reorganisation to rationalise the share price, eliminate most accumulated losses and create headroom for equity issuance, while the subscription, convertible bonds and creditors’ scheme aim to raise fresh capital and restructure existing indebtedness.