DRAGON RISE GP (06829) has entered into a blockchain agency agreement with a comprehensive blockchain service provider.

DRAGON RISE GP (06829) announced that on August 27, 2026, its wholly-owned subsidiary DRNE Next Mobility Investment Limited (DRNE Next Mobility) entered into a blockchain agency agreement with a comprehensive blockchain service provider concerning cooperation to issue private tokenized limited recourse notes backed by physical assets on the Ethereum and Solana blockchains (physical asset project). Under the blockchain agency agreement, DRNE Next Mobility has agreed to appoint the blockchain service provider as the token registrar for the guaranteed total return limited recourse tokenized notes. The blockchain service provider is responsible for maintaining the token register, minting and issuing tokenized notes, recording ownership transfers in the register, and executing all other administrative and operational matters related to the events of the effective period of the tokenized notes. The blockchain service provider is a limited company established in Hong Kong, and its parent company is a global wealth technology provider powered by artificial intelligence. The physical asset project is structured with DRNE Next Mobility as the issuer, and the company guarantees the issuance of the tokenized notes with an allocated quota equivalent to HKD 100 million, while the upper limit for the first batch of issuance is HKD 30 million. The tokenized notes are backed by actual income derived from a battery-swapping electric taxi fleet and the battery-swapping infrastructure, and will be converted into standardized, fractional, and traceable digital assets on the blockchain. As market conditions and investor demand evolve, more batches may be issued in the future. These assets will be tokenized and represented on the blockchain using the blockchain infrastructure of the service provider, in compliance with applicable regulations. Several of the tokenized assets are intended to be distributed in a compliant manner to qualified professional investors to facilitate issuance and subscription matters, and the group will continue to closely monitor regulatory developments in Hong Kong regarding tokenized securities and physical asset issuance. According to current regulatory requirements, investors based in Hong Kong must meet the qualifications of a professional investor as defined by the Securities and Futures Ordinance (Chapter 571) to participate, with a minimum subscription amount of HKD 400,000. The physical asset project offers a two-year lock-up period for investors, with target returns including a fixed interest component of 4% per annum and a performance-linked interest component of up to 6% per annum, while the company provides full guarantees for the principal and fixed interest of the first batch of tokenized notes to enhance investor security. The board believes that tokenizing income-generating assets such as a battery-swapping electric taxi fleet can address several structural challenges inherent in traditional infrastructure financing, including limited liquidity, information asymmetry, and high barriers to entry. Fractional ownership allows professional investors to participate in asset classes that previously lacked liquidity with a lower entry threshold, while recording operational data on the blockchain provides investors with improved cash flow visibility and auditability, reducing information asymmetry. The tokenized structure, which has potential for future stablecoin integration, not only simplifies cross-border settlements but also reduces currency exchange obstacles. Furthermore, by securitizing future income sources through this physical asset framework, the group can more efficiently recycle capital and accelerate the deployment of additional electric commercial vehicles and battery-swapping infrastructure, achieving scalable light-asset expansion. This move further solidifies the group's commitment to sustainable transportation and carbon reduction goals and aligns with the group's broader strategy to establish and promote a battery-swapping ecosystem for electric commercial vehicles. The group will also continue to collaborate with more industry partners to establish an open, compliant, and mutually beneficial tokenization model, leveraging digital technology to enhance the resilience of the physical industry and create sustainable value for investors in Hong Kong and globally. The board is confident that this initiative will not only enhance the group's financial flexibility but also set standards for the tokenization of green infrastructure assets, providing investors with secure, transparent, and attractive yield opportunities in digital assets.