Haiqi Group: Major obstacles exist in advancing the major asset restructuring.

Haiki Group announced that the company intends to acquire control of Hainan Tourism Duty Free, after the divestiture of the Huating project, by means of cash payment and/or assets. This transaction does not involve the issuance of shares or supporting fundraising, and the specific scope of assets remains to be negotiated. In September 2024, the company deliberated and approved a proposal for major adjustments to the original restructuring plan. According to the 2025 corporate bond annual report of Hainan Tourism Investment, the target company recorded a loss of RMB 146 million in 2025 after excluding the Huating project. Affected by factors such as intense competition in the duty-free market and slowing consumer demand, there is significant uncertainty regarding a subsequent improvement in the target company's performance. The advancement of this restructuring faces major obstacles, and there is significant uncertainty as to whether it can ultimately be implemented and completed.