Tsun Yip Holdings Limited announced that wholly-owned subsidiary Profit Station Limited has extinguished a long-standing promissory note by paying a HK$5.28 million settlement to the current noteholder on 31 July 2026, fully discharging all obligations.

Background • The promissory note, originally issued on 11 August 2011 for HK$45.04 million to finance the purchase of a 17% stake in China New Media (HK) Company Limited, had been extended several times, most recently to 30 June 2027. • As at 31 March 2026, the instrument carried a book value of HK$44.20 million. Including accrued interest of HK$7.06 million, the outstanding balance totalled HK$52.10 million at the time of settlement.

Key Financial Impact • Settlement amount: HK$5.28 million. • Expected one-off gain on debt extinguishment: HK$38.92 million (unaudited). • Pro-forma total liabilities fall to roughly HK$128.30 million. • Net worth flips from a deficit of HK$31.60 million to positive net assets of about HK$7.30 million. • Future periods will no longer bear effective interest or other non-cash finance costs related to the note.

Management Rationale The settlement figure was negotiated in light of the Group’s financial position, the prolonged nature of the debt, and the noteholder’s preference for immediate cash recovery. The board deems the terms fair and beneficial for shareholders.

Shareholders and potential investors are advised to exercise caution when dealing in Tsun Yip Holdings’ shares pending audited confirmation of the final financial impact.