On January 6, 2026 (after trading hours), the Company entered into a placing agreement with the placing agent, whereby the placing agent conditionally agreed, as agent for the Company, to use its best efforts to procure no fewer than six placees (each an independent third party) to subscribe for up to 20 million placing shares at a placing price of HK$2.16 per share. The placing shares will be allotted and issued pursuant to the general mandate granted to the Directors at the annual general meeting held on June 3, 2025. Assuming no change in the Company's issued share capital from the date of this announcement until the completion of the placing, the maximum number of placing shares represents approximately (i) 4.33% of the Company's existing issued share capital of 462 million shares as of the date of this announcement; and (ii) approximately 4.15% of the Company's issued share capital as enlarged by the allotment and issue of the placing shares. The total nominal value of the maximum number of placing shares under the placing will be HK$20,000. The placing price of HK$2.16 per share represents a discount of approximately 14.96% to the closing price of HK$2.540 per share as quoted on the Stock Exchange on January 6, 2026. The maximum gross proceeds and net proceeds (after deducting placing commissions) from the placing are expected to be approximately HK$43.20 million and HK$42.06 million, respectively. The Company intends to use the net proceeds of approximately HK$42.06 million from the placing to strengthen its general working capital and enhance the Group's financial position, of which (i) approximately HK$18 million will be used for purchasing materials, equipment, and covering cost expenses related to leather manufacturing and/or leather and motor vehicle engine extension cleaning services, as well as other trading businesses; (ii) approximately HK$14.06 million will be used as the Group's general working capital, including (but not limited to) payments for rent, employee costs, professional fees, and other general administrative and operating expenses; and (iii) approximately HK$10 million will be used for repaying outstanding debts.