CHIHO ENV(00976): Termination of comprehensive consolidation subsidiary company.

CHIHO ENV (00976) announced that as of September 1, 2024, the group's employees are restricted from entering the offices of Standard Group and contacting Standard Group employees. The group is unable to communicate with Standard Group, nor can it access the accounts and records of Standard Group. Despite the group's efforts to negotiate with Mr. Li and the management of Standard Group in order to reach a friendly resolution since September 1, 2024, these efforts have been unsuccessful. The management of Standard Group no longer reports any work to the group, and the group cannot access all necessary accounts and records of Standard Group to determine its operational and financial situation. The cessation of the comprehensive consolidation will terminate the comprehensive consolidation of the financial statements of Standard Group, including assets, liabilities, and certain reserves, resulting in a one-time loss for the group. The Board of Directors expects that the cessation of the comprehensive consolidation will have a significant impact on the group's comprehensive financial statements for the year ending December 31, 2024. The Board of Directors hereby announces that on February 25, 2025, an independent investigation led by the Company Audit Committee headed by independent non-executive directors Leung Pui Yee, Lee Chi Kwok, and Szeto Yuk Ting has been launched to identify relevant matters and individuals involved in any irregularities, as well as the impact of such irregularities on the company's finances or other aspects (if any). Recommendations will be made to the Board of Directors regarding actions to be taken. The company will make further announcements at an appropriate time to report the latest developments of the independent investigation to shareholders and potential investors.