CHYY Development Group Limited has unveiled a four-step capital reorganisation that will be put to shareholders at an extraordinary general meeting (EGM) on 26 June 2026.

Key Proposals 1. Share consolidation: Every ten existing shares of US$0.01 par value will be consolidated into one share of US$0.10. The issued share capital will fall from 4.53 billion shares to 452.69 million shares while authorised capital remains unchanged at US$160 million. 2. Capital reduction: Immediately after consolidation, the par value of each consolidated share will be cut from US$0.10 to US$0.01, generating a credit of roughly HK$40.74 million (US$0.09 per share) that will be transferred to the distributable reserve. 3. Sub-division: All authorised but unissued US$0.10 shares will be subdivided into ten new shares of US$0.01 each, restoring authorised share capital to 16 billion shares. 4. Board-lot change: Subject to the above steps becoming effective, the trading lot size on GEM will increase from 8,000 existing shares to 10,000 new shares.

Timetable Highlights • EGM: 26 June 2026, 10:00 a.m., Hong Kong. • Expected effective date for the entire capital reorganisation: 16 July 2026. • Free exchange of share certificates: 16 July – 21 August 2026. • Parallel trading period: 30 July – 19 August 2026.

Pricing Impact Based on the pre-announcement closing price of HK$0.037 per share, the theoretical price post-consolidation is HK$0.37. Each new board lot of 10,000 shares would be valued at HK$3,700, surpassing the HK$2,000 threshold stipulated by GEM Listing Rule 17.76.

Rationale The company cites compliance with GEM trading requirements and reduction of transaction costs as primary drivers. The lower US$0.01 par value will also provide flexibility for future capital-market activities, while the HK$40.74 million reserve credit can offset accumulated losses or be deployed for other lawful purposes.

Conditions The reorganisation is contingent on shareholder approval at the EGM, Cayman Islands regulatory filings (including a solvency statement), and the Stock Exchange’s approval for listing the new shares. No shareholders are required to abstain from voting, aside from holders of treasury shares.

No equity fundraising has been conducted in the past 12 months, and the board states it currently has no concrete fundraising plans, though future opportunities are not ruled out.