POWERLONG (01238) announced that on January 27, 2026, the seller, Powerlong Real Estate (BVI) Holdings Limited (a wholly-owned subsidiary of the Company), entered into an agreement with the buyer, Prime Capital Investment Limited. Under the terms and conditions of the agreement, the seller will dispose of the target shares (161 million shares in the issued share capital of POWERLONG CM (09909)) for a total consideration of HK$361 million. Following the completion of the transaction, POWERLONG CM will remain a non-wholly-owned subsidiary of the Company, and its financial performance, assets, and liabilities will continue to be consolidated into the Company's results. Since the second half of 2021, the Chinese real estate sector has entered a phase of deep adjustment, placing the Group's liquidity under unprecedented pressure. To alleviate this liquidity strain, the Group has proactively strengthened its financial risk management by implementing various measures. These include accelerating the pre-sales and sales of properties under development and completed properties, speeding up the collection of sales proceeds and other receivables, extending the debt maturity of certain borrowings, seeking new financing channels, advancing potential asset disposals, and controlling expenditures. However, due to the complex operating environment, the Group's sales recovery has been slow, and the liquidity crunch has become increasingly severe. Over the past few years, the Company has been working diligently with its professional advisors to advance a holistic management solution for its offshore debt. This effort aims to respect the rights of all stakeholders, with the hope that an improvement in the domestic operating environment will unlock the intrinsic value of the Group's business and assets. The Group has engaged in constructive dialogues with an ad hoc group of creditors and their respective advisors to achieve a debt restructuring based on consensus. Consequently, a restructuring plan has been formulated, designed to respect the existing rights of creditors and treat all creditors fairly; ensure a long-term sustainable capital structure and further stabilize the Group's operations; and protect the rights and interests of all stakeholders. On October 10, 2025, the Company entered into a Restructuring Support Agreement for the restructuring, which has garnered broad support from creditors. As announced on December 19, 2025, creditors holding over 85.48% of the plan debt had submitted letters of consent to accede to the Restructuring Support Agreement as of that date. According to the relevant terms and conditions of the restructuring, the restructuring consideration will include one or more options chosen by the plan creditors. These options include, but are not limited to, the Company selling or pledging shares in POWERLONG CM to raise, in whole or in part, a total of US$40 million in cash. By transferring the ownership interest in the target shares to the buyer, the Group will obtain cash proceeds within a relatively short timeframe. These cash proceeds will improve the Group's liquidity position and will be used to fund the restructuring, the plan, and the Group's daily operations. Therefore, the disposal demonstrates the continued support of the Group's controlling shareholder, while also ensuring management continuity for both the Group and POWERLONG CM, as the ultimate controlling shareholder of both companies will remain unchanged following the disposal.