ZHONG AO HOME (01538) has announced that all prerequisites for the issuance of warrants, as disclosed in the circular concerning the establishment of a joint venture company and the proposed issue of non-listed warrants, have been satisfied. The warrants were successfully issued on April 28, 2026, in accordance with the terms and conditions of the joint venture agreement.

Pursuant to the joint venture agreement, the company has issued 12.391 million warrants to Mr. Li Lixin, 30.3365 million warrants to Ms. Peng Zhen, and 42.7275 million warrants to Mr. Yan Zheheng, each for a nominal consideration of HK$1.00. This issuance serves as consideration for Dong Yu's fulfillment of its obligations under the joint venture agreement, as well as for the guarantee responsibilities undertaken by Mr. Li, Ms. Peng, and Mr. Yan under the same agreement.

Each warrant carries the right to subscribe for one warrant share at an exercise price of HK$0.42 per share at any time during the exercise period. As a condition for receiving the warrants, Mr. Li, Ms. Peng, and Mr. Yan are each required to execute a non-sale undertaking in favor of the company. They have committed not to sell any warrant shares they hold, nor enter into any agreement to sell such shares, or create any options, rights, interests, or encumbrances on the shares, unless and until the company's controlling shareholder sells its held shares.

Assuming full exercise of all attached subscription rights, the total gross proceeds and net proceeds expected to be raised are approximately HK$35.891 million and HK$35 million, respectively. The net proceeds will be allocated for the general working capital needs of the group.