BROAD HOMES (02163): Has submitted a bankruptcy reorganization application to the court.

Broad Homes (02163) announced that in recent years, the company has been deeply in debt and facing operational crisis due to the impact of the macroeconomy, real estate regulation, and the pandemic. Although multiple self-rescue measures have been taken, the results have been unsatisfactory, and all types of risks are now fully exposed and continuously increasing. According to the relevant provisions of the Company Law of the People's Republic of China and the Enterprise Bankruptcy Law of the People's Republic of China, due to the company's operational difficulties, it is unable to repay maturing debts and clearly lacks the ability to repay, thus meeting the conditions stipulated in Article 2 and Article 7 of the Enterprise Bankruptcy Law of the People's Republic of China, and is eligible for reorganization. At the same time, the company has deep technical reserves, a high industry position, and strong brand influence in the prefabricated construction industry, making it valuable for reorganization; and as a listed company on The Stock Exchange of Hong Kong, it has certain platform resource advantages and is expected to introduce high-quality strategic investors through reorganization to resolve debt risks, further enhance the core competitiveness of the enterprise, and create value for shareholders, employees, and society more effectively. For these reasons, based on the actual operational needs of the company and with the approval of the board of directors and shareholders' meeting resolution, the company submitted a bankruptcy reorganization application to the Changsha Intermediate People's Court on October 30, 2025. Bankruptcy reorganization is a judicial procedure aimed at saving a debtor company by adjusting its assets and liabilities, rearranging its management activities, and helping the company overcome financial difficulties and achieve rebirth. If the court approves the company's bankruptcy reorganization, the company will actively plan related matters, actively introduce reorganization investors, and speed up discussions with the court, creditors, and shareholders to formulate a reorganization plan and obtain court approval, eliminate the company's debt burden through a systematic debt resolution plan, divest non-performing assets, and push the company back onto a path of healthy development. This application will not have a significant impact on the company's current financial situation and production and operation, and the final impact will depend on the progress of this application and the audit results of the annual auditor.