Sheng Tang Holdings Limited (the “Company”) has entered into an agreement with its chairman and executive director to issue new shares for offsetting an outstanding shareholder’s loan. Under the arrangement dated 26 September 2025, 110,000,000 new shares will be allotted at a price of HK$0.285 per share, amounting to HK$31.35 million in total. This sum will be used to set off part of the debt owed by the Company to the chairman, who currently holds approximately 2.35% of the Company’s issued share capital.

The proposed issue price of HK$0.285 represents a discount of about 24.0% to the closing price of HK$0.375 on the date of the agreement. Upon completion of the transaction, the chairman’s shareholding will increase to around 8.97%, while public shareholders’ ownership is expected to decrease from 77.55% to 72.29%. According to the announcement, the transaction aims to reduce immediate cash repayments and strengthen overall financial stability.

An extraordinary general meeting is scheduled for 20 November 2025 to seek independent shareholders’ approval. Subject to fulfillment of necessary conditions, including the granting of a specific mandate to issue these shares, the Company expects to complete the debt capitalisation shortly after the meeting. The remaining balance of the outstanding sum owed will be repaid using the Company’s internal resources.