Red Star Macalline Calls 22 June 2026 AGM; Posts 2025 Loss, Skips Dividend, Details Director Pay and Seeks up to RMB 6.80 Billion Loan Cap with Xiamen C&D

Bulletin Express05-28

Red Star Macalline Group Corporation Ltd. (RS Macalline, HKEX: 01528; SSE: 601828) has issued a circular convening its 2025 annual general meeting (AGM) for 22 June 2026 in Shanghai. Key items to be tabled include the 2025 Board work report, a no-dividend profit distribution proposal, a revised remuneration framework for directors and senior management, re-appointment of auditors, and approval of a new loan framework with major shareholder Xiamen C&D.

Financial Overview • 2025 revenue: RMB 6.58 billion • Net loss attributable to shareholders: RMB 23.72 billion, driven mainly by RMB 23.44 billion fair-value loss on investment properties and RMB 3.90 billion of asset impairments. • Net operating cash inflow recovered to RMB 0.82 billion (2024: RMB 0.22 billion).

Dividend Policy • The Board proposes no cash dividend or capital reserve conversion for 2025, citing the full-year loss and the need to preserve cash for operations and future development.

Director & Senior Management Remuneration • Independent directors to continue receiving a fixed annual allowance of RMB 200,000 each. • Executive directors’ 2025 pay (pre-tax): – Chairman Li Yupeng: RMB 1.38 million – GM/Executive Director Shi Yaofeng: RMB 2.03 million – Deputy GM/CFO Yang Yingwu: RMB 1.66 million – Non-executive Director (former GM) Che Jianxing: RMB 1.76 million • 2026 plan retains fixed allowances for independent directors and performance-linked pay for executives; at least 50% of remuneration to remain performance-based. • A new “Remuneration Management System for Directors and Senior Management” will be adopted, aligning pay with long-term company performance and risk control; claw-back provisions apply for financial restatements or misconduct.

Auditor Re-appointment • RSM China proposed as PRC GAAP financial-statement and internal-control auditor for 2026; Rongcheng (Hong Kong) CPA Limited as international auditor. • Total 2026 audit fee set at RMB 6.50 million; internal control audit fee at RMB 1.30 million.

Loan Framework Agreement with Xiamen C&D • New three-year Loan Framework Agreement to replace the 2025 facility. • Facilities: – Revolving loan up to RMB 4.00 billion, available until 28 May 2028, with each drawdown priced at 1-year LPR + up to 90 bps. – Additional short-term loan facility up to RMB 2.50 billion, repayable by 31 December each year, available through 31 December 2027. • Proposed annual caps for maximum daily outstanding balances (including interest): – Effective Date–31 Dec 2026: RMB 6.70 billion – FY 2027: RMB 6.80 billion – 1 Jan – 28 May 2028: RMB 4.10 billion • No collateral required; loans to fund working capital, debt repayment and other operational needs. • As Xiamen C&D and its affiliate Lianfa Group hold a 29.96% stake, they will abstain from voting on this agenda item at the AGM. The board deems the terms fair and in the company’s and shareholders’ interests.

AGM Logistics • Date & Time: 22 June 2026, 14:30 (PRC time). • Venue: Conference Center, 3/F, South Building, Block B, Macalline Global Center, Shanghai. • H-share register closure: 16–22 June 2026; last day for share transfer registration is 15 June 2026. • Shareholders may vote by poll in person or by proxy; A-share investors can also vote via SSE’s online system.

Strategic Outlook for 2026 The Board plans to revitalise assets, expand asset-light operations, deepen category innovation—especially in high-end electrical appliances and new-retail furniture—grow supply-chain, decoration and overseas businesses, and enhance digital transformation, aiming to restore profitability and unlock asset value.

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