NEW CONCEPTS (02221) suggests carrying out share consolidation.

NEW CONCEPTS (02221) announced that the Board of Directors proposed a share consolidation, with the base of consolidating 10 existing shares into 1 share, and not dealing with any fractional shares resulting from this consolidation, adjusting the number of consolidated shares in the company's issued share capital to the nearest whole number. Currently, existing shares are traded on the Stock Exchange in units of 4,000 shares per board lot. After the share consolidation takes effect, the board lot size for the consolidated shares will still be 4,000 shares. On August 25, 2025 (after the trading session), the company (as the issuer) entered into a capitalization agreement with Mr. Zhu Yongjun, the Chairman and Executive Director of the Board (as the subscriber). The company will issue 10 million capitalization shares to Mr. Zhu at a price of HKD 1.00 per capitalization share to settle part of the outstanding debt owed to him. Under the agreement, the subscription price of HKD 10 million paid by Mr. Zhu will be offset against the equivalent amount of the outstanding debt.