RONGZUN INT'L H(01780): The controlling shareholder plans to sell up to 60% of the company's shares, reducing its stake to 15%.

RONGZUN INT'L H(01780) announces that the Board of Directors has been informed by the Company's Executive Director and major shareholder Dr. Kinji Kinji and Mr. Kenichi Yanase, who collectively hold 28.05% and 65.45% of Kyosei Technology Inc. (the "Seller"), respectively, that on October 21, 2025, the Seller entered into a placement agreement with Good Securities Limited (the "Placement Agent"). The Placement Agent has agreed to use its best efforts to encourage investors (the "Subscribers") to purchase up to a maximum of 372 million existing shares of the Company held by the Seller at a price of not less than HK$0.446 per share. The placement period will commence from the date of the agreement and end on the earlier of Tuesday, October 28, 2025 at 5:00pm, or the time and date when the Placement Agent receives purchase orders for a total of at least 372 million shares from the Subscribers, or any other time and/or date as may be agreed in writing by the Seller and the Placement Agent. Under the placement agreement, the Placement Agent shall use reasonable efforts to ensure that the Subscribers and their ultimate beneficial owners are independent of the Company and any related parties (as defined in the Listing Rules), and are not connected or acting in concert (as defined in the Hong Kong Takeovers Code) with the Company or each other. The Subscribers, together with persons acting in concert with them, shall not immediately hold 30% or more of the Company's issued share capital after the placement, or trigger a mandatory general offer for the Company's shares under Rule 26.1 of the Takeovers Code. As of the date of this announcement, the 372 million shares to be placed represent 60% of the Company's existing issued share capital. Assuming all shares are successfully placed with Subscribers, after the completion of the placement, Kyosei Technology Inc.'s holdings in Rongzun International Holdings Limited will reduce to 93 million shares, equivalent to 15% of the total issued share capital of the Company. Therefore, Dr. Kinji Kinji, Mr. Kenichi Yanase, or the Seller will no longer be the controlling shareholders of the Company. The Company anticipates that the placement will not have any adverse impact on the operations of the Company and its subsidiaries.