Kinetic extends connected loan agreement to 2027

Kinetic Development Group Limited announced on December 22, 2025, that its indirect wholly-owned subsidiary, Kinetic (Qinhuangdao), entered into a Third Supplemental Agreement to the 2020 Loan Agreement with Guizhou Liliang. This agreement extends the repayment date of an RMB57 million loan (HK$63 million) from December 31, 2025, to December 31, 2027. The loan will bear interest at 3.5% above the 1-year loan market quoted interest rate announced by the National Interbank Funding Center, payable annually, with the principal and outstanding interest due upon expiry.

The original 2020 Loan Agreement, entered on June 22, 2020, provided RMB57 million for a two-year term. Subsequent Supplemental Agreements on December 23, 2022, and February 9, 2024, had previously extended the repayment to December 31, 2023, and December 31, 2025, respectively. The loan is intended for the borrower's operational needs, repayment of borrowings, and replenishment of working capital.

Guizhou Liliang is 100% indirectly held by Mr. Zhang Li, a substantial shareholder of Kinetic Development Group Limited, classifying this as a connected transaction under Chapter 14A of the Listing Rules. The transaction is subject to announcement, reporting, and annual review requirements but is exempt from independent shareholders' approval. The directors consider the extension fair and reasonable, utilizing idle funds to increase revenue.