STAR GROUP ASIA (01560) and its subsidiary SMI have reached a settlement agreement with Shanghai Commercial Bank.

STAR GROUP ASIA (01560) announced that on June 26, 2026, the company and its subsidiary Green You Investments Limited (SMI) entered into a settlement agreement with Shanghai Commercial Bank. According to the settlement agreement, all parties have agreed to voluntarily return several properties held by SMI and registered with the bank as the first legal charge (as collateral for loans from Shanghai Commercial Bank) to partially settle the outstanding loan financing granted by the bank to the group. The properties voluntarily returned under the settlement agreement are located at 22 Wang Yip Street South, Yuen Long, Hong Kong, including: 19 parking spaces on the 1st floor of Wang Yip; 8 office units on the 3rd, 5th, 9th, and 10th floors of Wang Yip; and a shop on the ground floor of Wang Yip. The Board of Directors believes that the settlement agreement is a friendly commercial arrangement between the group and the bank, which does not involve any default on the group's loans with Shanghai Commercial Bank, and the group has not received any statutory demands for repayment from the bank. The settlement agreement optimizes the group's balance sheet and manages its debt structure. It will also reduce the interest costs borne by the company, thereby improving its performance. The directors believe that the terms of the settlement agreement are fair and reasonable, agreed upon through fair negotiation under normal commercial terms, and are in the overall best interests of the company and its shareholders.