RELIANCE GLO HL (00723) subsidiary enters into a memorandum of cooperation in relation to the possible acquisition of 51% equity interest in Beijing Zhongran Xinchuang Technology

RELIANCE GLO HL (00723) announces that on 15 September 2026 (after trading hours), Huitong Minerals, an indirect wholly-owned subsidiary of the Company, entered into a memorandum of cooperation with the seller, Mr. Guo Yanqing, in relation to the possible acquisition. The buyer intends to acquire from the seller a 51% equity interest in the target company, Beijing Zhongran Xinchuang Technology. The principal business of the target group is the development, manufacture and sale of automotive interiors (principally including but not limited to composite flooring). If the possible acquisition is implemented, upon completion of the possible acquisition, the members of the target group will become indirect non-wholly-owned subsidiaries of the Company, and their financial results will be consolidated into the Company's financial statements. Pursuant to the memorandum of cooperation, Huitong Minerals shall pay RMB10 million to the seller as a refundable deposit for the possible acquisition. Although the Group is principally engaged in forest-related businesses (including timber supply chain and sustainable forest management) and money lending business, it is actively seeking business opportunities that can create value. The Group intends to acquire quality businesses with good potential to diversify its business portfolio and enhance profitability. The seller and the management team of the target group have extensive experience in the automotive interior industry in mainland China, covering research and development, technical development, production and sales capabilities. They have established and maintained good cooperative relationships with major automobile manufacturers in mainland China, providing support for the stable operation and future business development of the target group. Such industry expertise and established partner networks constitute the core strengths of the seller and the target group. The Board believes that, in the long run, the possible acquisition will not only increase the Group's revenue sources but will also be beneficial to the Group's future business expansion and development. In addition, the memorandum of cooperation can provide the Group with an exclusive negotiation period to conduct detailed due diligence and allow more time to negotiate better terms with the seller for a formal acquisition agreement.