SJM HOLDINGS (00880) terminates gaming operations at Ponte 16 Casino.

SJM Holdings (00880) announced that following a comprehensive and prudent business assessment, the company has decided not to proceed with the acquisition of the property where the Ponte 16 Casino is located. This decision was made after careful consideration of long-term business strategy, commercial considerations, and overall resource allocation within the group. The result reflects the group's cautious and pragmatic approach to capital planning, as well as its focus on strengthening core business in line with market developments and long-term growth strategies. As a result, on November 20, 2025, SJM Holdings and Ponte 16 Entertainment Group Limited (Ponte 16, a subsidiary in which SJM Holdings holds a 51% interest), have mutually agreed to terminate the agreement. According to the Listing Rules Chapter 14A, Ponte 16 is not considered an associate of the company. As per the termination agreement, the "Service Agreement" dated December 30, 2022 (amended by a supplemental agreement dated March 30, 2023) between the same contracting parties will be terminated early starting from November 29, 2025. After the termination, Ponte 16 will no longer provide services to SJM Holdings at the Ponte 16 Casino, and the casino will cease operations. The board of directors believes that the termination agreement and the closure of Ponte 16 Casino will not have any significant adverse impact on the overall business, operations, liquidity, or financial condition of the group.