CLOUDBREAK-B(02592) has fully paid the settlement amount to Cedar Wealth according to the terms and conditions of the settlement agreement.

CLOUDBREAK-B (02592) Announcement, regarding Cedar Wealth filing legal proceedings against the Company's indirect wholly-owned subsidiary, CloudVision Guangzhou. On January 15, 2026, Cedar Wealth, the Company, and CloudVision Guangzhou entered into a settlement agreement regarding these proceedings. According to the settlement agreement, in exchange for a total settlement amount of approximately $2.22 million USD to be paid by the Company to Cedar Wealth, the settlement amount will serve as a full and final resolution of the proceedings (including all claims made and all costs incurred by Cedar Wealth in relation to the proceedings) and any payment obligations by the Company and CloudVision Guangzhou under the agreement. Upon payment of the settlement amount by Cedar Wealth to the Company or its representative: (a) an application will be made to the court for the lifting of the asset preservation order; (b) an application will be made to the arbitration commission for the withdrawal and termination of the arbitration proceedings; and (c) continued assistance and cooperation will be provided to the Company and CloudVision Guangzhou, and all necessary steps will be taken to lift the asset preservation order and terminate the proceedings. As of the date of this announcement, the Company has fully paid the settlement amount to Cedar Wealth in accordance with the terms and conditions of the settlement agreement. The Company's legal advisor in China has indicated that it is expected to take approximately six weeks to complete the necessary legal and administrative procedures to lift the asset preservation order and terminate the proceedings from the date of Cedar Wealth's submission of the relevant applications. The terms and conditions of the settlement agreement were negotiated fairly by the parties and are considered normal commercial terms. The Board of Directors believes that entering into the settlement agreement is in the overall interest of the Company and its shareholders, and the settlement will not have a significant adverse impact on the overall business, operations, and cash flow of the Group. As of the date of this announcement, the Group's business and operations continue as usual.