Hong Kong – 17 March 2026 – KA SHUI International Holdings (Stock Code: 00822) has agreed to purchase the remaining 40% equity interest in its indirect subsidiary, Kamay New Material Technology (Yulin) Company Limited (“Target”), for RMB14.30 million in cash. The transaction, executed after market close via the group’s wholly owned vehicle Ka Shui Metal Company Limited (“Purchaser”), will transform the Target into a wholly owned subsidiary upon completion.

Transaction structure and pricing • Vendor: Jiaxian Zhongtuo Huixin Technology Co., Ltd. (“Vendor”). • Asset: 40% equity interest in the Target. • Consideration: RMB14.30 million, payable within 30 days after equity transfer registration. • Valuation basis: 40% of the Target’s unaudited net assets of RMB31.40 million as at 31 December 2025, plus RMB1.74 million reflecting the Vendor’s share of unpaid government subsidies and certain Target costs borne by the Purchaser. • Funding: Internal resources.

Conditions precedent Completion hinges on regulatory and corporate approvals, execution of a long-term raw-material supply agreement between a related company of the Vendor and the Target, and customary warranties and undertakings remaining true at closing.

Strategic rationale Full ownership will give KA SHUI INT’L greater management autonomy to accelerate development and commercialisation of flame-retardant, corrosion-resistant and high-thermal-conductivity magnesium alloys. Management also expects tighter control to enhance responsiveness to rising demand for cost-competitive magnesium alloys, particularly as manufacturers seek alternatives to plastics and higher-priced aluminium.

Target profile and recent performance The Target, currently 60%-owned by KA SHUI INT’L, manufactures and sells metallic materials in Mainland China. Key unaudited financial metrics: • Net assets (31 Dec 2025): RMB31.40 million • Loss after tax: RMB2.44 million for FY 2024; RMB2.32 million for FY 2023

Regulatory classification With the highest applicable percentage ratio under Hong Kong Listing Rules exceeding 5% but below 25%, the deal is categorised as a discloseable transaction, requiring announcement and reporting but not shareholder approval.

Completion timeline Upon satisfaction of the conditions precedent, the Vendor will assist in registering the equity transfer with the relevant PRC authorities, after which the Target will become an indirect wholly owned subsidiary of KA SHUI INT’L.