YAN PALACE (01497) announced that, pursuant to the general mandate for the repurchase of H shares granted by the company's shareholders at the annual general meeting held on May 11, 2026, the company's board of directors intends to repurchase H shares on the open market from the date of this announcement until the expiration of the said general mandate, with a total amount not exceeding HK$100 million. The total number of H shares to be repurchased will not exceed 46.1693 million H shares, representing 10% of the total number of issued H shares as of the date of the annual general meeting (excluding treasury shares, if any). The company currently maintains a healthy cash flow and a robust overall financial position, which can support the sustained development needs of its business. The board believes that the value of the H shares trading on the market is undervalued. The board considers that the repurchase of H shares demonstrates the company's confidence in its business outlook and prospects, enhances returns to shareholders, and will ultimately benefit the company and create value for shareholders, aligning with the overall interests of the company and its shareholders.