Legend Strat (01355) announced that the board of directors has been informed that Hehui International Development Limited (Hehui) (in which Mr. Yuan Fuer, Chairman and Non-executive Director of the Board, holds 100% beneficial interest in Hehui) holds 539,129,020 ordinary shares of the company (each being a "pledged share"), representing approximately 45.19% of the company's issued share capital as of October 9, 2025; and holds outstanding accounts receivable principal of approximately HK$28.569 million owed by the company as of the date of this announcement. Hehui has entered into a settlement agreement with Osibao Cosmetics International Limited (the pledgee) (in which Mr. Zhang Zhengwu holds 100% beneficial interest in the pledgee), pursuant to which: (a) Hehui has transferred 345,929,020 pledged shares to the pledgee; and (b) Hehui has transferred ownership of the accounts receivable to the pledgee as partial settlement of Hehui's liabilities and debts to the pledgee under the loan agreement.

Upon completion of the transfer, Hehui's remaining balance will be 193,200,000 pledged shares, and all remaining shareholdings will continue to be pledged to the pledgee as security for Hehui's remaining liabilities and debts to the pledgee under the loan agreement. After completion of the transfer, the pledgee and Hehui will hold approximately 28.99% and approximately 16.20% of the company's total issued share capital respectively. Therefore, the pledgee will become the company's major shareholder and largest single shareholder, while Hehui will no longer be the company's controlling shareholder but will remain a major shareholder of the company.

In addition, due to other business arrangements, Mr. Yuan Fuer has resigned as Non-executive Director and Chairman of the Board. Mr. Zhang Zhengwu has been appointed as Non-executive Director, effective from October 10, 2025.