Central Development Holdings (00475) announced that on November 28, 2025, the company (as the issuer), Mr. Hu Yangjun (as the creditor), and Hanhai Capital (as the subscriber) entered into a loan capitalization agreement. The parties conditionally agreed that Hanhai Capital would subscribe for 87.5 million capitalization shares at HK$0.4 per share, which the company would allot and issue.

The total subscription price payable by Hanhai Capital for all capitalization shares will be settled upon completion of the loan capitalization by capitalizing and offsetting part of the loan. The 87.5 million capitalization shares represent approximately 21.23% of the total issued shares as of the announcement date. Assuming no changes in the total issued shares from the announcement date until the completion of the loan capitalization agreement, the issuance would account for about 17.51% of the enlarged issued share capital.

Given the group's current financial condition, it lacks the capacity to repay the debt owed to Mr. Hu without straining existing financial resources. The loan capitalization enables the group to settle part of its liabilities without utilizing current financial resources, thereby avoiding cash outflow.