XIN POINT HOLDING(01571): The new tariffs may have an impact on the group's business and operations.

XIN POINT HOLD (01571) announces that due to the group's products being sold to US customers on a "Delivered Duty Paid" (DDP) basis, where the group is responsible for arranging transportation and delivering goods to a specified location, as well as clearing customs and paying all applicable taxes and duties. The imposition of additional tariffs has made the group's supply commercially unfeasible and may even constitute force majeure. However, the group is still offering US customers the opportunity to continue purchasing Chinese products, provided they agree to bear the related tariffs. The Board of Directors has been closely monitoring global economic and geopolitical risks and their impact on the group's business operations. As part of the group's international expansion strategy in recent years to enhance its global supply capabilities, manufacturing bases have been established in Mexico and Malaysia to supplement its domestic production capacity in China. The group is actively negotiating with its US customers to explore the feasibility of migrating its product manufacturing processes to production facilities in Mexico and Malaysia. The volume of shipments directly exported from China to the US and affected by US tariffs accounted for approximately 30.7% of the total revenue for the year ending December 31, 2024. As of the date of this announcement, the Board believes that the new tariffs may impact the group's business and operations, but a specific assessment and calculation of the impact cannot be made yet as negotiations are ongoing regarding passing on the tariff costs to end consumers and evaluating the feasibility of moving manufacturing processes to low-tariff areas. The company will continue to closely monitor developments and take measures to mitigate the impact of US tariffs on the group's business and operations at the appropriate time.