Coastal Greenland Limited announced that receiver-controlled interests representing 153.13 million shares, or 36.93% of its 414.60 million issued shares, were sold to Deep Water Strategy Limited, wholly owned by Mr. Cao Mengjie. The transfer, completed on 24 August 2026, obliges the purchaser to launch a mandatory conditional cash offer for all remaining shares not already held or agreed to be acquired by its concert parties, under Rule 26.1 of Hong Kong’s Takeovers Code.

The receiver, Mr. Yeung Man Sun of McMillan Woods (Hong Kong) CPA, had been seeking buyers since his appointment on 9 July 2026 in relation to enforcement of security over loan agreements dated 2024 and 2025. Practice Note 24 stipulates that active marketing by a receiver starts an offer period; therefore, the period was deemed to have commenced on 10 July 2026. The company failed to publish the required Rule 3.7 announcement at that time, constituting a breach of the Takeovers Code. Management attributes the lapse to inadvertent oversight and the absence of appointed professional advisers.

To strengthen compliance, the board plans to: 1. Provide Takeovers Code training for directors and senior management. 2. Enhance coordination with external professional advisers. 3. Seek legal advice proactively for future transactions with potential takeover implications.

Trading in Coastal Greenland shares was suspended at 9:00 a.m. on 24 August 2026 pending the forthcoming Rule 3.5 announcement containing inside information. Suspension remains in force until further notice.

Under Rule 3.8 of the Takeovers Code, the company confirms it has no relevant securities other than its 414.60 million issued shares. Associates of both Coastal Greenland and the purchaser holding 5% or more of any class of relevant securities are reminded of their obligation to disclose dealings during the offer period.

The board, comprising two executive and three independent non-executive directors, accepts full responsibility for the accuracy of the disclosed information.