On December 16, Ge Long Hui announced that SHEEN TAI (01335.HK) entered into a loan agreement with the borrower on June 12, 2023, under which the borrower is required to repay the principal and pay interest to the lender by March 18, 2024. On March 21, 2024, the lender, borrower, and personal guarantor entered into a supplementary agreement, whereby the parties conditionally agreed to extend the repayment date to November 30, 2024, and increase the loan interest rate from 0.42% per month to 1% per month, with additional guarantees provided by the personal guarantor.

Due to the borrower's failure to fully repay the principal along with the interest before the repayment date, the borrower is considered to be in default. As of the date of this announcement, the amount of the unpaid loan and accumulated interest under the loan agreement is approximately RMB 44.99 million.

The lender has sought legal advice and sent a collection letter to the borrower on November 30, 2024. The lender had negotiated with the borrower and the personal guarantor on November 29, 2024. However, neither the borrower nor the personal guarantor has repaid the outstanding loan and accrued interest as of the date of this announcement. Given these circumstances, the lender will take legal action against the borrower and personal guarantor to recover the unpaid loan and accrued interest, including but not limited to executing the secured rights under the loan agreement, supplementary agreement, and personal guarantee agreement.

The company believes that the borrower's failure to repay the outstanding loan does not constitute a significant adverse impact on the group's working capital adequacy.