Subsidiary company Polyfair HLDGS (08532) receives liquidation petition from Bao Fa Construction.

POLYFAIR HLDGS (08532) announces that on January 20, 2026, Starway (Hong Kong) Limited (the petitioner) has filed a winding-up petition against its wholly owned subsidiary, Bao Fa Construction Engineering Limited (Bao Fa Construction), in accordance with the Companies (Winding Up and Miscellaneous Provisions) Ordinance of Hong Kong Chapter 32. The petition seeks a winding-up order against Bao Fa Construction and a hearing has been scheduled for April 8, 2026. The petition is in response to an outstanding judgment debt of approximately HK$416,000 (including costs) arising from a judgment issued by the Lands Tribunal on June 23, 2025. The dispute stems from an old lease agreement. The Company and the petitioner had reached a settlement agreement in December 2025, with a remaining debt of around HK$261,000. As the Company failed to make timely payments as per the agreement, the petitioner is seeking a winding-up order against Bao Fa Construction. As of the date of this announcement, the High Court has not issued any winding-up order against Bao Fa Construction. The Company believes that the amount involved is not significant to the overall operations and financial condition of the Group. The Company will contact the petitioner as soon as possible to settle the outstanding debt and resolve the matter amicably. The Company is also seeking legal advice to determine the appropriate course of action in response to the petition, with the goal of safeguarding the interests of the Company and its shareholders. The Board of Directors believes that this matter can be resolved promptly and appropriately.