REDCO HEALTHY (02370) announced that on December 31, 2025, the company received a letter from Mr. Li Yinglin, acting as the joint and several receiver and manager of 150 million pledged shares of the company, equivalent to 75% of the company's total issued share capital as of the date of this announcement. Mr. Ma Demin and Mr. Li Yinglin were appointed as the joint and several receivers and managers of the pledged shares on December 25, 2025. The letter stated that, as consideration for a financing facility of USD 150 million provided under a facility agreement dated September 17, 2021, entered into by the company's controlling shareholder, REDCO Properties Group Ltd., as borrower, and Standard Chartered Bank (Hong Kong) Limited, as agent, which was subsequently amended and restated by a supplemental agreement dated March 23, 2022, Minggao International Holdings Limited, the company's direct holding company, as chargor, and Standard Chartered Bank, as security agent, had entered into a share charge deed pursuant to the facility, under which Minggao charged, among other assets, the pledged shares to Standard Chartered Bank.

The letter further indicated that Standard Chartered Bank subsequently assigned all rights and interests of the lenders under the facility and the charge deed to Haitong International Capital (Hong Kong) Limited, and pursuant to this assignment, R&O Trust and Agency (HK) Limited was appointed as the facility and security agent. Subsequently, Zhongwan International Limited became the sole lender under the facility and the charge deed via a transfer agreement dated December 22, 2025. The receivers were informed by the lender that an event of default had occurred under the facility, and this default remained uncured.

Following the event of default, the security provided under the charge deed became immediately enforceable, and R&O, as the current facility and security agent, had the right to, and did, exercise the powers conferred by the charge deed, including, but not limited to, the power to appoint receivers over the pledged shares. The letter stated that, pursuant to their appointment, the receivers are entitled to exercise all powers under the charge deed, which include the right to take possession of the pledged shares, the right to cause the pledged shares to be registered in the name of the receivers and/or any nominee deemed appropriate to secure control over the shares, the right to receive dividends from the pledged shares, and the right to sell the pledged shares.

As of the date of this announcement, the company has not obtained any information regarding how the pledged shares will be handled by the receivers upon enforcement. There are no indications that the receivers are actively seeking potential buyers for the pledged shares, nor have any discussions been held with potential buyers regarding the shares. The enforcement of the pledged shares by the receivers may result in a change of control of the company. The company will issue further announcements in due course in accordance with the Listing Rules or upon obtaining relevant information.