On January 5, 2026, the company's indirect wholly-owned subsidiary, Avit International, purchased an insurance policy from HSBC Life and paid an initial single premium of US$3.5 million (approximately HK$27.3 million).

The policy is a life insurance policy with Mr. Li Bingguang as the insured person, and Avit International as the policyholder and beneficiary.

According to the terms of the financing documents, the Group is required to purchase a key person insurance policy with the Group as the beneficiary to protect against any potential losses or damages that may arise from the unfortunate death of Mr. Li Bingguang.

Mr. Li Bingguang is an executive director, the chairman of the board, and the chief executive officer of the company and is considered a key person of the Group.

The Board believes that the policy can provide financial benefits and protection for the Group in the event of Mr. Li Bingguang's unfortunate death.

Furthermore, the death benefit receivable by the policyholder under the policy upon the death of the insured may, after a certain period, exceed the premiums paid.

On January 5, 2026, the borrowers (Avit International and Zhenqi International Limited) accepted the financing documents, pursuant to which, among other things, the lender, The Hongkong and Shanghai Banking Corporation Limited, agreed to provide the borrowers with a revolving trade loan facility of up to HK$215.8 million, subject to the terms and conditions of the financing documents.

The financing documents stipulate, among other things, specific performance obligations for the controlling shareholder.