FSM HOLDINGS (01721) has announced that it became aware of a press release issued by the U.S. Department of the Treasury's Office of Foreign Assets Control on October 14, 2025. The release designated the company's executive director, Li Thet, for suspected involvement in a transnational criminal organization led by the Prince Group, accused of cyber fraud and money laundering activities, which resulted in sanctions by the Office of Foreign Assets Control. Upon receiving this news, the company took immediate steps to ensure full compliance with applicable laws and regulations and initiated an internal assessment regarding any potential impacts related to this matter. The company is currently seeking professional advice to evaluate and address the situation and will issue further announcements as appropriate. Li Thet has resigned from his executive director positions at the company, its subsidiaries, and associated companies effective from October 21, 2025, to allocate more time to his other commitments and businesses. Consequently, Li Thet will no longer serve as the chairman of the board or the chairman of the nomination committee effective from October 21, 2025.