Neo-Neon Holdings Limited (NEO-NEON) has disclosed that deposits placed with China Nuclear Finance Company Limited (the Finance Company) temporarily surpassed the approved limit under their existing Deposit Service Agreement, triggering heightened regulatory requirements under Chapter 14A of the Hong Kong Listing Rules.

Between 11 February and 2 March 2025, the Group’s maximum daily closing balance of deposits reached RMB39.49 million, breaching the 2025 annual cap of RMB37.00 million for up to 20 consecutive days. The overrun was first identified on 3 March 2025 when monthly statements were reviewed, and the excess amount was withdrawn the same day. Since then, daily balances have remained within the stipulated cap.

The Company attributes the incident to an “unintentional inadvertent oversight”, as one Qualified Group Member placed a RMB36 million fixed-term deposit while another entity was adjusting existing balances, reflecting insufficient internal coordination.

Because the overrun lifted the highest applicable percentage ratios above the 5 % threshold, the transactions became subject to additional reporting, announcement, annual review and independent shareholder approval obligations. NEO-NEON acknowledged that it did not obtain the requisite re-approval before exceeding the cap, constituting a breach of Listing Rule 14A compliance procedures.

To mitigate recurrence risk, NEO-NEON has implemented the following measures: 1. Conducted targeted Listing Rules training for directors, senior management and finance staff. 2. Increased frequency of compliance reminders and instituted routine reporting of daily deposit balances to the Board. 3. Mandated forecasting of deposit flows and real-time escalation if balances approach preset limits. 4. Enhanced coordination across Qualified Group Members to monitor aggregate deposit positions closely.

The Board, including independent non-executive directors, expressed the view that deposits were made on normal commercial terms and within the ordinary course of business. Given the tightened controls, management believes the existing annual caps of RMB37.00 million for 2026 and 2027 remain adequate and does not plan to seek revisions or convene a shareholder meeting on this matter.