Coastal Greenland Limited (Stock Code: 1124) revealed that Coastal International Holdings Limited (the Vendor) and Tao Qian Limited (the Offeror) are in discussions regarding the potential sale of 153,126,197 shares, representing approximately 36.93% of the Company’s issued share capital. The Offeror has not yet entered into a formal sale and purchase agreement as due diligence investigations on the Company are ongoing.

Upon completion of any potential transaction, the Offeror and its concert parties would hold approximately 36.93% of the Company’s issued share capital, potentially triggering a mandatory conditional cash offer under Rule 26.1 of the Hong Kong Code on Takeovers and Mergers. No legally binding agreement has been finalized, and the proposed sale may or may not proceed.

The Vendor initially defaulted on a loan facility secured by a share charge over the same group of shares. The Lender, Salubrious Group Limited, is wholly owned by Vantum SP Opportunity Limited Partnership Fund and is deemed to be acting in concert with the Offeror. With the announcement released, trading in the Company’s shares resumed at 9:00 a.m. on 20 October 2025.