HUSCOKE HLDGS (00704) received a default notice from Cinda Hong Kong, is alleged to have committed a fundamental breach, and is required to make up cumulative repayments of not less than HK$18 million.

HUSCOKE HLDGS (00704) announced that, among other things, the Company entered into (I) a supplemental agreement; (II) an equity pledge agreement; (III) a charge and arrangement deed; and (IV) a third-party escrow agreement with CHINA CINDA (Hong Kong) Asset Management Co., Ltd. and/or its subsidiaries. On November 4, 2026, the Company received a default notice from Cinda Hong Kong, which considered that the Company had failed to fully satisfy the minimum repayment obligation under the settlement agreement, and declared that: the Company has committed a fundamental breach; the Company is required to immediately rectify the breach, perform its repayment obligations in accordance with the settlement agreement, and immediately upon receipt of this notice make up cumulative repayments of not less than HK$18 million; the aforesaid fundamental breach continues to exist until full make-up is completed; Cinda Hong Kong reserves the right to take all necessary legal actions against the aforesaid breach in accordance with the settlement agreement and relevant laws and regulations, including but not limited to exercising and/or enforcing all rights, remedies, powers or discretions under the additional security documents pursuant to the settlement agreement, initiating court proceedings or collection procedures, etc.; and the aforesaid reservation of rights by Cinda Hong Kong and the issuance of the default notice do not constitute a waiver or variation of any rights, remedies or arrangements under the settlement agreement. As the Company submitted a new enforcement filing application to the Luliang Intermediate People's Court on January 9, 2026, with the enforcement subject being all amounts owed by Energy Technology to the Company equivalent to approximately RMB160 million, with interest continuing to accrue until all outstanding amounts are repaid, the Luliang Intermediate Court has still not responded. Therefore, on September 18, 2026, the Company engaged AllBright to submit the latest enforcement application to the Luliang Intermediate Court based on Energy Technology's latest total outstanding indebtedness equivalent to approximately RMB174 million. If the aforesaid enforcement can be implemented smoothly and promptly, the Company will have sufficient funds to make up the repayment obligation and continue to perform the settlement agreement. Therefore, on the one hand, the Company will continue to pursue the receivables owed by Energy Technology to the Company; on the other hand, it will also seek legal advice to study the impact and losses caused to the Company by the Luliang Intermediate Court's failure to handle the enforcement application in a timely manner in accordance with the law. At the same time, the Company will also maintain communication and negotiation with Cinda Hong Kong.