MAJOR REVIEW FOR THE YEAR

The Manufacturing and Sales Business faced significant volatility due to geopolitical fragmentation and trade protectionism, leading to a year-on-year revenue decline. Despite these challenges and intense price competition in the People’s Republic of China (the “PRC”), the Group successfully narrowed its losses by integrating digital solutions and refining operations to improve production efficiency. Management further bolstered sales in resilient domestic and international markets while implementing rigorous cost-saving measures and procurement optimizations. To ensure financial stability, the Group maintains strict credit controls and monitors receivables closely to effectively mitigate bad debt risks.

Focusing on industrial assets in Qingyuan, the Property Development Business navigated a pressured PRC real estate market. Although investor sentiment remained cautious, the Group maintained stable performance by completing the delivery of industrial buildings and dormitories. However, persistent liquidity constraints and softened demand across the sector resulted in a loss for the Year. The Group remains committed to monitoring market trends and optimizing its portfolio to improve the segment’s long-term financial health.

STRATEGIC OUTLOOK FOR THE YEAR 2026

Resilience in a Shifting Global Landscape

The coming year will be characterized by its inherent complexities, as ongoing geopolitical tensions and global conflicts continue to impact energy costs, logistics networks, and raw material pricing. While these challenges are industry-wide, they reinforce the urgency of our strategic transition. We are navigating an increasingly multipolar world where the reconfiguration of global supply chains and the redistribution of production capacity demand both foresight and agility.

Our course for 2026 is defined by clarity: we will sharpen our competitive edge through operational agility and intelligent automation, ensuring every capital commitment is governed by strict financial discipline. We remain prepared to respond with speed as market dynamics evolve.

Operational Agility through Intelligent Integration

Market behaviors are shifting decisively, with customers increasingly prioritizing leaner, more responsive supply arrangements over traditional, rigid commitments. In response, we are reinforcing our commercial model to provide greater flexibility and accelerated turnaround times at every touchpoint. We believe this emphasis on agility over scale provides a distinct competitive advantage in the current landscape.

To drive this evolution, we are committed to the progressive adoption of artificial intelligence (“AI”) and automation throughout our production processes. For our Group, AI is more than an efficiency tool; it is a foundational capability that allows us to respond to market shifts with precision. We will continue to intensify quality improvement initiatives across our manufacturing operations, targeting measurable reductions in waste, operational costs, and lead times.

Strategic Capital Stewardship

The Board is engaged in a proactive review of the Group’s asset portfolio to ensure that management resources and capital are deployed where they generate the highest long-term returns. We are identifying opportunities to unlock latent value within our mature asset base. We are optimizing these holdings to ensure our capital structure remains lean and fully supports our long-term strategic goal.

Building Future-Ready Human Capital

We recognize that the Group’s long-term value is fundamentally driven by our people. As we deploy increasingly sophisticated AI-driven systems, we are simultaneously investing in “upskilling” our workforce to ensure our team is equipped to lead in this new technological era.

Delivering Sustainable Shareholder Value

We enter 2026 from a foundation that is more focused, more efficient, and better aligned with the trajectory of global industry. While the macroeconomic environment remains volatile, we are confident that our core priorities－operational excellence, intelligent technology adoption, and disciplined capital stewardship－position the Group to deliver sustainable long-term value to our shareholders.

On behalf of the Board, I wish to express my sincere gratitude to our shareholders, investors, business partners, and all employees for their unwavering support and dedication throughout the Year, notwithstanding the unprecedented challenges faced. We remain resolute in our commitment to operational excellence and to delivering sustainable value to our customers and shareholders.

SUEK Ka Lun, Ernie
Chairman and Chief Executive officer

Hong Kong
27 March 2026