Fairwood Holdings Limited announced that the Securities and Futures Commission of Hong Kong (SFC) has initiated legal proceedings in the Court of First Instance to seek disqualification orders against several former directors of the delisted Target Insurance (Holdings) Limited. One respondent is Dr Peter Wan Kam To, who also serves as an independent non-executive director (INED) of Fairwood Holdings.

The SFC alleges that Target Insurance’s former directors failed to implement adequate safeguards over funds placed with Nerico Brothers Limited for purported foreign-currency algorithmic trading between June 2020 and October 2021, exposing the company to significant concentration risk. No court decision has been made against Dr Wan as at the date of Fairwood’s announcement (18 June 2026).

Fairwood’s board confirms: 1. The SFC action concerns Target Insurance only and does not involve any other Fairwood directors or management. 2. Dr Wan has obtained legal advice and intends to defend the case. 3. Based on information currently available, the proceedings are not expected to adversely affect Fairwood’s business or operations, and Dr Wan remains suitable to continue as an INED.

Dr Wan has further confirmed that there is no additional information requiring disclosure under Listing Rules 13.51B(2) and 13.51(2)(h)–(v). The board, citing Dr Wan’s past performance, sees no materially adverse impact on his role.

Fairwood’s board composition as of 18 June 2026: • Non-executive Director: Dennis Lo Hoi Yeung (Chairman) • Executive Directors: Lo Fai Shing Francis (Vice Chairman); Peggy Lee (Chief Executive Officer) • Independent Non-executive Directors: Joseph Chan Kai Nin; Dr Peter Lau Kwok Kuen; Dr Peter Wan Kam To; Yip Cheuk Tak

The company reiterates that the SFC proceedings are unrelated to Fairwood’s operations and discloses the matter in compliance with Listing Rules 13.51B(2) and 13.51(2)(u).