XH NEWS MEDIA (the “Company”) has signed a placing agreement with KGI Asia Limited to issue up to 5.83 million new shares under its existing general mandate, according to an announcement dated 2 September 2026.

Key terms • Size and dilution: The new shares represent 11.19% of the current 52.10 million issued shares and will expand the enlarged share capital to 57.93 million shares, cutting existing holders’ proportional stakes accordingly. • Placing price: HK$0.80 per share—13.98% below both the 2 September 2026 closing price and the five-day average price of HK$0.93. • Gross proceeds: Approximately HK$4.66 million; net proceeds after costs of around HK$0.10 million and a 1.5% placing commission are estimated at HK$4.56 million. • Use of funds: All net proceeds are earmarked for general working-capital purposes. • Mandate capacity: The general mandate approved on 30 September 2025 allows up to 9.66 million new shares; 3.83 million have been used previously, leaving sufficient headroom for the current placement. • Conditions and timeline: Completion hinges on Stock Exchange approval for listing and dealing in the new shares. Settlement is scheduled for the third business day after these conditions are met, with long-stop date on or before 23 September 2026.

Post-placement shareholding • Existing substantial shareholders Chen Xiangren, Yu Weikun and Yu Huilin will see their stakes fall to 9.08%, 8.33% and 6.87%, respectively. • New placees will collectively hold 10.06% of the enlarged share capital; no single placee is expected to become a substantial shareholder. • Public float remains well above the 25% regulatory minimum at 75.72%.

Strategic rationale Management cites volatile market conditions and the need to diversify the investor base as drivers for the transaction, viewing the placement as an efficient method to raise working capital for ongoing operations in cleaning services, waste management, advertising media, property investment, TMT and water-treatment initiatives.

Recent fundraising activity In May 2026 the Company raised HK$5.00 million via a separate share issue under the general mandate, fully applied to debt repayment.

The latest placement reinforces XH NEWS MEDIA’s liquidity position while modestly diluting existing shareholders and comes at a meaningful discount intended to secure investor uptake amid challenging market conditions.