REDCO HEALTHY (02370): Delivery of the statutory debt repayment letter to Lijiao Real Estate.

REDCO HEALTHY (02370) announced that on August 25, 2026, Li Gao Real Estate received a letter from a law firm acting on behalf of creditors, accompanied by a statutory demand for payment (the "Statutory Demand") served on Li Gao Real Estate on August 25, 2026, pursuant to section 178(1)(a) or 372(4)(a) of the Hong Kong Companies (Winding Up and Miscellaneous Provisions) Ordinance, demanding payment of approximately USD 82.6 million (the "Debt"). The total amount claimed by the creditors is approximately USD 82.6 million (including principal and accrued default interest), which arises from the financing referenced in the announcement of the receivership. According to the Statutory Demand, Li Gao Real Estate is required to repay the Debt within 21 days from the date the Statutory Demand was served; otherwise, the creditors may initiate winding-up legal proceedings against Li Gao Real Estate. The Board hereby informs the shareholders and potential investors of the Company of the following: (a) Neither the Company nor any other member of the Group is a party to the financing, guarantee deeds, or the Statutory Demand, and neither the Company nor any other member of the Group has provided any guarantees, indemnities, mortgages, or other credit support regarding the Debt or any other debts of Li Gao Real Estate and its subsidiaries (excluding the Group) (Li Gao Real Estate Group). Therefore, the Group has no payment obligations regarding the Debt. (b) The Group has a management team, employees, assets, bank accounts, financial systems, and operational structures that are independent of the Li Gao Real Estate Group. As of the date of this announcement, the Group's bank and other financing arrangements have not been affected by the Statutory Demand. (c) However, shareholders and potential investors should note that as disclosed in the announcement regarding changes in shareholding, the receiver has exercised the right to sell part of the pledged shares. Any further adverse actions taken against Li Gao Real Estate, including the filing of a winding-up petition against Li Gao Real Estate and/or the receiver further exercising its rights concerning the remaining pledged shares (including the right to sell), may result in changes to the Company's controlling shareholder and/or ultimate control, which may trigger liabilities under the Takeovers Code, the Merger Code, and the Buy-Back Code, and may affect the composition of the Board and the management of the Group. (d) Li Gao Real Estate Group is a customer of the Group and is also a counterparty in several continuing connected transactions with the Group, details of which are disclosed in the Company's announcement dated January 16, 2026. Any deterioration in the financial condition of Li Gao Real Estate Group may adversely affect the income the Group receives from Li Gao Real Estate Group, as well as the recoverability of amounts receivable from Li Gao Real Estate Group, and may consequently result in further impairment provisions being made by the Group. (e) The Board is closely monitoring the developments regarding the Statutory Demand and will maintain communication with Li Gao Real Estate. The Board will assess the potential legal, financial, and operational impacts of this matter on the Group and will take appropriate measures it deems necessary to safeguard the overall interests of the Company and its shareholders.