POLYFAIR HLDGS(08532): Currently seeking legal advice on two matters.

POLYFAIR HLDGS (08532) announces that, according to the provisions of Chapter 32 of the Hong Kong Companies (Winding-Up and Miscellaneous Provisions) Ordinance, there have been two winding-up petitions filed separately with the High Court of Hong Kong against the company and its wholly-owned subsidiary, Polyfair Construction Company Limited (Polyfair Construction). On May 6, 2026, DBS Bank (Hong Kong) Limited (the first petitioner) filed a winding-up petition with the High Court seeking an order for the winding-up of the company. The petition relates to the outstanding guarantee debt of approximately HK$6.41 million (including accrued interest) that the company incurred in relation to a bank financing granted to Polyfair Construction. The first petitioner served the statutory demand for repayment on January 9, 2026, requiring repayment within 21 days, but the company has not fully settled the debt. The petition is scheduled for a hearing on July 29, 2026. On May 8, 2026, RexonBon Wei Limited (the second petitioner) filed a winding-up petition with the High Court seeking an order for the winding-up of Polyfair Construction. The second petitioner alleges that Polyfair Construction has failed to repay a judgment debt of approximately HK$1.27 million, which arose from a settlement agreement entered into between Polyfair Construction and the second petitioner on May 9, 2025. Due to the default in the installment payments under the settlement agreement, the debt has become due; the petition is scheduled for a hearing on August 5, 2026. As of the date of this announcement, the High Court has not issued any winding-up orders in respect of either petition. The company and Polyfair Construction are currently seeking legal advice in relation to both petitions. The board of directors is taking these matters very seriously and is actively taking steps to address the outstanding liabilities. The company is in discussions with both petitioners in an effort to reach a mutually acceptable settlement arrangement. At the same time, the company is actively seeking potential investors and exploring various fundraising options, including but not limited to share placements and rights issues, to strengthen the group's capital base, improve liquidity, and provide sufficient financial resources to repay outstanding debts and restore stable business operations. The company is seeking legal advice in relation to the two petitions and will take all necessary measures to safeguard the rights of the company and its shareholders.