NEW CITY DEV (00456) announced that on February 13, 2026, the board was informed that an investment property owned by the group's subsidiary, Guangzhou Changliu Investment Co., Ltd., located at 20-22 Chigang West Road, Haizhu District, Guangzhou, Guangdong Province, China, commonly known as Changliu Industrial Park, was included in a unified public welfare land acquisition by the government in early 2025. This led to the forced termination of the lease agreement between Guangzhou Changliu and Guangdong Changna Investment Development Co., Ltd. regarding the group's investment property. Guangdong Changna claimed it acted as a stakeholder on behalf of cooperative participants in the lease agreement. Consequently, Guangdong Changna, as the main lessee of the investment property, stated that its cooperative partners, as stakeholders, requested joint participation in the handling of follow-up matters related to this incident by Guangzhou Changliu. Due to government requirements for enterprises included in the public welfare land acquisition to not only cooperate promptly with the government on tasks such as demolition but also to maintain social stability, Guangdong Changna, its cooperative partners, and Guangzhou Changliu reached a settlement agreement. Under this agreement, the group's Guangzhou Changliu must pay compensation of RMB 180 million to Guangdong Changna and its cooperative partners. Regarding this compensation, the group is assessing its impact and negotiating payment methods and arrangements with Guangdong Changna and its partners. To protect the interests of the group's Guangzhou Changliu and pending the final land acquisition and demolition compensation terms from relevant government departments to fulfill the obligations under the settlement agreement, the group's board has decided to issue a RMB-denominated note to Guangdong Changna and its partners or their designees. This note will have a one-year term with an annualized interest rate of 4%. Simultaneously, the group's board has directed the completion of the note in compliance with relevant laws and regulations in Hong Kong and mainland China, aiming to reach a consensus and assist Guangzhou Changliu in continuing to strive for an early resolution of the land acquisition compensation arrangement with the government.