CLOUDBREAK-B (02592) Has Fully Paid the Settlement Amount to Cedar Wealth According to the Terms and Conditions of the Settlement Agreement

CLOUDBREAK-B (02592) announced details regarding, among other matters, legal proceedings initiated by Cedar Wealth against the company's indirectly wholly-owned subsidiary, CLOUDBREAK Guangzhou. On January 15, 2026, a settlement agreement was entered into by, among others, Cedar Wealth, the company, and CLOUDBREAK Guangzhou to resolve these proceedings. According to the terms of the settlement agreement, in consideration for the company's payment of a total settlement amount of approximately $2.22 million to Cedar Wealth, this payment will serve as a full and final resolution of the proceedings, including all claims raised therein and all costs incurred by Cedar Wealth, as well as any and all payment obligations of the company and CLOUDBREAK Guangzhou under the relevant agreements. Following the payment of the settlement amount by the company or its representative, Cedar Wealth is obligated to immediately: (a) apply to the court for the lifting of the asset preservation order; (b) submit an application to the arbitration committee to withdraw and terminate the arbitration proceedings; and (c) provide ongoing assistance and cooperation to the company and CLOUDBREAK Guangzhou, taking all necessary steps to effect the lifting of the asset preservation order and the termination of the proceedings. As of the date of this announcement, the company has fully paid the settlement amount to Cedar Wealth in accordance with the terms and conditions of the settlement agreement. The company has been advised by its PRC legal counsel that the legal and administrative procedures required to lift the asset preservation order and terminate the proceedings are expected to take approximately six weeks to complete from the date Cedar Wealth submits the relevant applications. The terms and conditions of the settlement agreement were determined following fair negotiations between the contracting parties and are on normal commercial terms. The Board of Directors believes that entering into the settlement agreement is in the overall interests of the company and its shareholders, and that the settlement has not had any materially adverse impact on the Group's overall business, operations, or cash flow position. As of the date of this announcement, the Group's business and operations remain normal.