NEW SILKROAD (00472): Subsidiary proposes to acquire 224,200 shares of i-Aurora Co., Ltd. and 90,500 shares of &SOUL Co., Ltd. for a total consideration of KRW 5 billion

NEW SILKROAD (00472) announced that on 8 October 2026 (after trading hours), KSR, an indirect non-wholly-owned subsidiary of the Company, entered into the i-Aurora Share Purchase Agreement, the &SOUL Share Purchase Agreement and the Subscription Agreement in respect of the Investment, pursuant to which: (i) KSR has conditionally agreed to acquire, and Culture Monster Co., Ltd. (Seller A) has conditionally agreed to sell, 224,200 ordinary shares of i-Aurora Co., Ltd. (Target Company A), representing approximately 2.67% of the issued share capital of Target Company A, at a consideration of approximately KRW 2 billion (equivalent to approximately HK$10.8 million); (ii) KSR has conditionally agreed to acquire, and Better Ground Investment Fund No. 2 (Seller B) has conditionally agreed to sell, 50,000 ordinary shares of &SOUL Co., Ltd. (Target Company B), at a consideration of approximately KRW 1.391 billion (equivalent to approximately HK$7.5 million); and (iii) KSR has conditionally agreed to subscribe for, and Target Company B has conditionally agreed to issue and allot, 40,500 new ordinary shares of Target Company B at a subscription price of KRW 39,700 per share, with an aggregate subscription amount of approximately KRW 1.609 billion (equivalent to approximately HK$8.7 million). Pursuant to these agreements, the total consideration payable by KSR is approximately KRW 5 billion (equivalent to approximately HK$27 million). Upon completion of the &SOUL Share Purchase Agreement and the Subscription Agreement, KSR will hold a total of 90,500 ordinary shares of Target Company B, representing approximately 30.98% of the enlarged issued share capital of Target Company B. The Board considers that the Investment is in line with the above development direction of the Group. The Target Companies are engaged in businesses related to merchandise, sales channels, payment, membership services and other consumer-facing businesses. The Directors believe that these business resources may provide the Group with opportunities to further understand the Korean consumer market and explore potential cooperation in areas including product sourcing, sales and distribution, payment-related services and promotional activities, thereby supporting the Group's exploration of trade-related opportunities. By establishing equity interests in the Target Companies, the Group intends to strengthen its commercial relationships with them and lay the foundation for identifying and evaluating future cooperation opportunities. At the same time, the Investment will enable the Group to participate in the future development of the Target Companies in pursuit of medium- to long-term capital appreciation and potential investment returns. The Group currently has no intention of participating in the daily management or operations of either Target Company, and their daily operations will continue to be carried out by their respective management teams. The Group will monitor the performance of its investments and evaluate future cooperation opportunities based on actual business needs, commercial viability and terms as may otherwise be agreed among the relevant parties.