VPOWER GROUP (01608) has issued an announcement regarding its ongoing efforts to improve the Group's financial condition and secure funding to meet working capital needs. Since China National Technical Import & Export Corporation (CNTIC) became the controlling shareholder in September 2023, the Company has actively engaged with stakeholders to explore solutions.

The Company has reached an agreement with certain lending banks to restructure offshore debts totaling approximately HKD 2.077 billion in principal. On November 14, 2025, VPOWER GROUP and the lenders entered into a restructuring master agreement. Key terms include:

(i) Upon fulfillment or waiver of conditions (including the provision of agreed credit support documents by the Company, its subsidiaries, CNTIC, and Energy Garden Limited (EGL), as well as the Company's payment of an agreed upfront fee), lenders will temporarily suspend enforcement actions related to existing defaults under the loan agreements (effective from the "Suspension Effective Date").

(ii) The restructuring will take effect (the "Restructuring Effective Date") upon meeting further conditions, including execution of amended loan agreements and obtaining necessary approvals from Chinese regulators.

(iii) Post-restructuring, the remaining offshore debts will be uniformly extended by 5.5 years retroactively from September 2, 2025, with reduced interest rates and waivers for certain existing defaults.

Upon completion, the Group's offshore debt is expected to be reduced and restated to approximately HKD 1.38 billion in principal. Successful restructuring will substantially resolve immediate bank loan repayment obligations, alleviating liquidity pressure.

The revised terms (including extended repayment periods and adjusted interest rates) are expected to significantly strengthen the Company's financial position. VPOWER GROUP anticipates that the restructuring will optimize its capital structure, create a stable financial foundation, and allow refocusing on core operations, accelerating project development, and pursuing sustainable growth opportunities.