According to the announcement made by Momentum Fin (01152), the company received a letter dated September 16, 2024, which was sent by the holder of an acceptance note with a principal amount of 20 million Hong Kong dollars, and the recipient was the company itself.

The reminder letter indicates (including): significant adverse changes in the company's financial condition, due to a significant decrease in comprehensive net profit for the six months ended June 30, 2024; and the acceptance note holders request the immediate repayment of the outstanding total amount of the acceptance notes within 14 days from the date of the reminder letter, which is approximately 20.3 million Hong Kong dollars.

As of June 30, 2024, the company has outstanding trade and other payables of approximately 214.1 million Hong Kong dollars, final holding company loans of approximately 50 million Hong Kong dollars, bank and other borrowings of approximately 16 million Hong Kong dollars, acceptance notes of approximately 39.3 million Hong Kong dollars, and corporate bonds of approximately 50.5 million Hong Kong dollars, while bank balances and cash are approximately 12.2 million Hong Kong dollars.

Based on the above, the board of directors believes that the company may not be able to repay the outstanding amount before the deadline stated in the reminder letter. The company is currently evaluating the impact related to the reminder letter and seeking professional advice. In addition, the company will negotiate with the acceptance note holders and other creditors of the group to explore other possible repayment plans. The company has applied to the Stock Exchange of Hong Kong for the resumption of trading in its shares on the morning of September 19, 2024.