LVGEM CHINA (00095) has announced that the primary construction work for Phase 1 (LVGEM Baishizhou Jingting) of its key urban renewal project located on Shahe Street, Nanshan District, Shenzhen (the Baishizhou Urban Renewal Project) has been completed, and the relevant government acceptance procedures have been finalized. According to documents issued by the relevant Shenzhen government authorities, LVGEM Baishizhou Jingting has obtained, among others, the following: the Shenzhen Construction Project Joint Completion Acceptance Opinion; the Shenzhen Construction Project Planning Acceptance Certificate; and the Shenzhen Nanshan District Housing and Construction Bureau's Fire Acceptance Opinion for Special Construction Projects. These documents confirm that LVGEM Baishizhou Jingting has been constructed in accordance with the approved plans and applicable regulations and has passed the relevant completion acceptance organized by the competent government departments. The Baishizhou Urban Renewal Project is a key urban renewal initiative for the Group. The Board of Directors believes that the project's completion and the successful acquisition of the required regulatory acceptances represent a significant milestone, laying a solid foundation for subsequent steps, including the sales, delivery, and operation of the Baishizhou Urban Renewal Project. The Group has formally commenced the delivery process for the residential units at LVGEM Baishizhou Jingting. The Board is confident that the launch of the Baishizhou Urban Renewal Project in the market will further enhance the Group's property portfolio in the Greater Bay Area and the South China market, positively impacting the Group's future business development and financial performance. The Board further believes that the completion of the Baishizhou Urban Renewal Project will also aid the Company in its ongoing discussions with various stakeholders regarding the proposed overall debt restructuring and significantly increase the likelihood of successfully negotiating and implementing a comprehensive restructuring plan. Regarding the matter announced on March 24 concerning the Company's non-payment of approximately USD 458.5 million in due principal amounts, the Company has proactively adopted strategic measures to address its liquidity challenges, including the disposal of investment properties. Among these, the Company has been actively advancing the sale of the NEO Building (the Property) at 123 Hoi Bun Road, Kowloon, Hong Kong, as a crucial part of its efforts to alleviate financial pressure. The Property is currently mortgaged under a mortgage dated July 29, 2024, executed by Olinda Limited (Olinda), an indirect wholly-owned subsidiary of the Company, as mortgagor, and held by Bank of China (Hong Kong) Limited as security agent. The Company is engaged in ongoing discussions with the security agent and the syndicate lenders concerning a loan facility provided to certain borrowers, including Olinda, aiming to establish a suitable framework for managing and potentially realizing the value of the Property. To facilitate the proposed sale of the Property and to maximize its value for the lenders and the Company, the security agent appointed Mr. Jacky Chong and Mr. Suen Man Chun of PricewaterhouseCoopers Ltd. on February 2, 2026, as joint and several receivers and managers over certain assets, including the Property. The Board considers this appointment a critical step in promoting the Company's efforts to reduce debt and improve its capital structure, with the potential to accelerate the process of offshore debt restructuring. The Board believes this appointment will not have any adverse financial impact on the Company or the Group. This appointment will transfer the Property to a professional team for centralized management and organized sale, which will help optimize the Property's daily operations, reasonably control expenses, and maximize the realization of its value efficiently, thereby safeguarding the overall interests of the lenders, all creditors, and investors. Furthermore, the Board wishes to emphasize that this appointment is not expected to disrupt the Group's ongoing communication with various creditors and other stakeholders regarding the offshore restructuring matters.