Palinda Group Holdings Limited (Palinda Group) disclosed receipt of a Writ of Summons from Shanghai Commercial Bank Limited on 27 February 2026. The bank demands HK$101.99 million, comprising outstanding principal, accrued and default interest, contractual charges and enforcement costs on two term loans. Palinda Wines (H.K.) Limited is cited as borrower, while Palinda Group is named guarantor. Management is preparing a defence and is in discussions with the lender on potential settlement or restructuring.

Financial snapshot to 31 December 2025 • Net loss: HK$98.03 million • Net operating cash outflow: HK$5.29 million • Cash and bank balances: HK$0.27 million • Total borrowings: HK$116.89 million • Interest payables: HK$13.49 million • Overdue portion: HK$90.00 million in principal and HK$11.99 million in interest

The overdue loan is secured by a floating charge over inventories of HK$300.00 million and a limited corporate guarantee from the Company. After an HK$84.60 million impairment, inventories carried a net value of HK$479.39 million at year-end.

Auditors drew attention to a material uncertainty regarding going-concern status, given liquidity pressure and overdue debt. Directors expect to secure adequate financing through ongoing negotiations with the bank and receivers.

Palinda Group has engaged legal advisers to assess the claim’s merits and will make further disclosures in line with GEM Listing Rules. Shareholders and investors are urged to exercise caution when dealing in the Company’s shares.