China and Austria arrived home (01538) terminated the establishment of a joint venture

According to Zhitong Finance App, China Austria (01538) issued an announcement regarding the joint venture agreement between Xinzhao (a wholly-owned subsidiary of the Company) and Ms. Jiang Caiying. The contracting parties agreed to jointly operate the joint venture group and exchange shares of HK$0.93 per share (subject to adjustment) according to the initial exchange price. After the share exchange rights are known to be exercised, a maximum of 329 million shares will be allocated and issued. A joint venture agreement will not be valid until all prerequisites have been reached on or before September 30, 2026; otherwise, the joint venture agreement will lapse, and the contracting party will not assume any responsibility or obligation under it. Since the conclusion of the joint venture agreement, Xinzhao has continued to conduct due diligence on all aspects of the joint venture agreement and the proposed transaction under it (including but not limited to the restructuring process, formation of an operating team, and business development of the joint venture group). However, it is expected that all prerequisites under the joint venture agreement will not be reached on or before September 30, 2026, so Xinzhao notified Ms. Jiang Caiying to immediately terminate the joint venture agreement on August 18, 2026.

The Board believes that the termination of the joint venture agreement will not have any significant adverse impact on the Group's business, operations or financial position. Since the joint venture agreement has been terminated, no circulars will be sent to shareholders, and no special general meeting of shareholders will be convened.