On January 6, 2026, the company (as the issuer) entered into a Payables Capitalization Agreement with the trustee, KP Lee Chambers (as the subscriber). The company has conditionally agreed to allot and issue, and the trustee (acting for and on behalf of the trade creditors) has conditionally agreed to subscribe for a total of 7.4895 million Payables Capitalization Shares at HK$2.350 per share, to settle the outstanding trade payables owed by the relevant debtors to the trade creditors. The subscription amount of HK$17.6003 million payable by the subscriber under the Payables Capitalization Agreement will be settled by way of a full set-off against the outstanding trade payables due from the Group to the trade creditors. Assuming no change in the company's issued share capital from the date of this announcement until the completion date, the Payables Capitalization Shares represent approximately 18.92% of the company's issued share capital as of the date of this announcement; and approximately 15.91% of the company's issued share capital as enlarged by the allotment and issue of the Payables Capitalization Shares. The Payables Capitalization will allow the Group to settle its outstanding debt without utilizing the company's existing financial resources and avoid a cash outflow. The Directors believe that, to strengthen the Group's financial and liquidity position to facilitate its business development, preserving liquidity as much as possible is in the overall interests of the company and its shareholders. Although the allotment and issue of the Payables Capitalization Shares will have a dilutive effect on existing shareholders, the Directors consider this dilutive effect to be reasonable under the circumstances after considering that the capitalization of the outstanding trade payables can alleviate the Group's repayment and settlement pressure; and that the Payables Capitalization Shares will be fully recognized as equity of the company upon allotment and issuance, thereby reducing the gearing ratio, expanding the capital base, and enhancing the Group's net asset value position.