Texwinca hold (00321) announced that on June 26, 2024, its indirect wholly-owned subsidiary, Guangzhou Lingke, signed a compensation agreement for land and building expropriation with the Guangzhou Development Zone Key Project Promotion Center. Guangzhou Lingke will receive a total of RMB 98,170,500 (equivalent to HKD 106 million) as compensation for relocation.

Guangzhou Lingke has made reasonable arrangements for the follow-up transition issues of this move, and it is expected that the relocation will not have a significant negative impact on its business operations. The compensation will be used for Guangzhou Lingke's general operating capital and business development, and the management ensures that the compensation will be used reasonably. This compensation is expected to help the Group obtain asset replacement income, supplement the Group's cash flow, reduce external financing costs, and provide cash security for the Group's current operations and future overall development.