According to the announcement from CIFI HOLD GP (00884), the company is planning a restructuring that may involve the cancellation of existing debts and the release of all current debt obligations of the debtor. As part of this plan, creditors (excluding sanctioned plan creditors) will have the option to choose one or more options according to their preferences and needs. This will establish an improved capital structure that is validated by the company's financial models and capable of ensuring solvency. The restructuring will occur through the following means: for the existing convertible bonds, by seeking consent to change the governing law, allowing for the restructuring of these documents (existing convertible bonds consent solicitation); for the existing perpetual securities, likewise by seeking consent to change the governing law for restructuring (existing perpetual securities consent solicitation); and the plan itself. The consent solicitations for existing convertible bonds and perpetual securities were formally approved on June 3, 2025, with the governing law changing for these instruments one hour prior to the restructuring effective date. The plan was approved by the required statutory majority of plan creditors at the plan meeting on June 3, 2025, and the court issued an order of approval on June 26, 2025 (the plan approval order). A stamped copy of the plan approval order was submitted to the Director of the Hong Kong Companies Registry on June 27, 2025. The plan became effective on June 27, 2025, and is binding on all creditors under its constraints. The existing debt amounting to approximately $8.1 billion, including $6.8 billion in unpaid principal and $1.3 billion in accrued interest, will be cancelled. In its place, new instruments with a total principal of approximately $6.7 billion (representing the outstanding offshore debt as of the restructuring effective date) will be issued, along with approximately $9.5 million in cash payments. It is expected that the Group's offshore debt will be reduced by approximately $1.4 billion upon the effective date of the restructuring. Notably, around $4.1 billion of the new instruments will be mandatory convertible bonds, and as these convert into shares of the Company, the Group’s offshore debt obligations will continue to decrease. Moreover, the remaining $2.6 billion of the new instruments will be issued in the form of short-term, medium-term, and long-term notes as well as loan financing, which will likewise reduce the Group's offshore debt obligations as payments are made in accordance with the terms of these instruments. Overall, the restructuring aims to provide the Company with a long-term, sustainable capital structure and a stronger balance sheet, enabling the Group to meet its debt obligations, alleviate liquidity pressures, align debt repayment needs with the current financial situation of the Group and the Chinese real estate industry, and create maximum value for all stakeholders (including shareholders) while ensuring their rights are fully respected and treated fairly. Post-restructuring, the Company intends to utilize sales generated from its operations and/or domestic and overseas asset sales to settle any remaining offshore debt obligations. The total principal amount of the mandatory convertible bonds issued under special authorization is $4.075 billion, with a date of issuance coinciding with the effective date of the restructuring and a maturity of 4 years from the benchmark date. The initial conversion price for the mandatory convertible bonds is set at HKD 1.6 per share, a premium of approximately 392.3% over the last traded price of HKD 0.325 per share on the Hong Kong Stock Exchange on September 26, 2024, which was the last trading day prior to signing the restructuring support agreement. The initial conversion price triggering the conversion is HKD 5.0, representing a premium of approximately 1438.5% over September 26, 2024's last traded price. Based on the initial conversion price of HKD 1.6, the maximum number of shares that can be converted from the mandatory convertible bonds to be issued is 19.866 billion shares. According to the trigger conversion price of HKD 5.0, the maximum number of shares that can be converted from the mandatory convertible bonds is 6.357 billion shares. Regarding the issuance of mandatory convertible bonds to Maofu, on the last practicable date, Maofu (as a related party of the Company) is a plan creditor holding an existing note of $3 million. Maofu has opted to receive option 2A (cash payment and mandatory convertible bonds) under the plan and will receive mandatory convertible bonds with a principal amount of $2.939 million on the effective date of the restructuring, which can be converted at the initial conversion price into 14.3277 million shares (representing 0.14% of the shares issued as of the last practicable date). In a similar context, Rain-Mountain, also a related party and holding a $1 million existing note, will receive mandatory convertible bonds with a principal of $1.0824 million, convertible into 5.2767 million shares (representing 0.050% of the shares issued as of the last practicable date). Regarding the special authorization for shareholder loans, on the last practicable date, Maofu's loans to Spectron remain outstanding. On October 15, 2025, Maofu, Spectron, and the Company entered into a shareholder loan equity conversion agreement. The parties agreed that Spectron will substitute its rights and obligations under the shareholder loan to the Company. Following the transfer, the shareholder loan will be cancelled, and Maofu intends to convert the outstanding amount into shares per the terms in the shareholder loan equity conversion agreement. Following the cancellation of the shareholder loans, but before the issuance of new shares under the shareholder loan equity conversion agreement, such amounts will be recorded as liabilities in the Company’s accounts. Subsequently, after Spectron transfers the shareholder loans to the Company and assuming that the conversion does not trigger any obligation for Maofu or any member of the holding group regarding any mandatory general offer for all issued shares and other securities of the Company under the definitions stated in the Takeovers Code Rule 22 Note 4, the Company will issue new shares to the designated escrow account and Maofu without retaining any liens, claims, encumbrances, guarantees, mortgages, property burdens, or similar interests, in exchange for the cancellation of the shareholder loans, at a conversion price of HKD 0.40 (the shareholder loan conversion price). The number of shares issued upon the total conversion of the shareholder loans will be calculated as the total amount of shareholder loans divided by the shareholder loan conversion price, resulting in the issuance of 1.315 billion shares after the complete conversion. The Board proposes the adoption of a share award plan. Under this plan, the Company may grant awards in the form of restricted share units, which will vest in shares or cash as determined by the Board according to the plan's rules. If the awards vest in shares, the Company will issue new shares. The purpose of the share award plan is to align the interests of eligible individuals with those of the Group through share ownership, encouraging and incentivizing significant contributions to the Company's business and operations as well as fulfilling the Company's obligations under new instruments post-restructuring. The Board has decided to grant a total of 2.441 billion awards to four selected participants; however, this is contingent on shareholder approval of the share award plan at a special general meeting. Of the 2.441 billion awards: 2.218 billion will be granted to Mr. Lin Zhong; 95 million to Mr. Ru Hailin; 80 million to Mr. Yang Xin; and 48 million to Mr. Ge Ming. A proposal to increase the registered capital has been made, with the Board recommending a resolution at the special general meeting for shareholder approval to increase the authorized share capital by 30 billion unissued shares, thus raising the registered capital from HKD 2 billion (divided into 20 billion shares) to HKD 5 billion (divided into 50 billion shares). These shares will rank equally in all respects. This proposal aims to facilitate the transactions detailed in the timely circular while addressing the insufficiency of the Company’s authorized capital to cover new shares issued as part of the aforementioned transactions, thereby providing greater flexibility for future fundraising as the Group develops its business. The Board believes that increasing the registered capital is in the overall interest of the Company and its shareholders.