CLARITY MEDICAL (01406): Revocation of Xie Weiye's director position.

CLARITY MEDICAL (01406) announces that, according to Article 86(4) of the company's Articles of Association, if a director suspends debt repayment or reaches a settlement agreement with creditors, their directorship shall be revoked. The company's management has reported to the board of directors about the pending legal cases and bankruptcy petitions against the executive director, Dr. Xie Weiye, which have been initiated on February 12, 2025, and May 19, 2025, as well as formal notices from the Hong Kong government regarding outstanding debts owed by Dr. Xie and other events indicating that he may not be able to settle these debts. In interpreting the provision of Article 86(4) regarding the disqualification of directors who suspend debt repayment or reach settlement agreements with creditors, the board of directors has sought legal advice from a Cayman Islands law advisor. Additionally, the company's Hong Kong legal advisor has recommended that the board of directors consider all facts when applying Article 86(4) to Dr. Xie Weiye. Based on the above advice, the board of directors convened a meeting on August 1, 2025, to consider the revocation of Dr. Xie Weiye's directorship. At 1:05 PM on August 1, 2025, the majority of the board voted to revoke Dr. Xie Weiye's directorship, with immediate effect. Ms. Zheng Yuling and Mr. Lu Zikang voted against the announcement. Due to Dr. Xie Weiye's significant interests involved, he was required to abstain from voting. The other directors voted in favor of the announcement. As Mr. Wang Can (an independent non-executive director) was traveling during the board meeting, he appointed Mr. Jiang Bo (an executive director) as his alternate to vote on the resolution being discussed at the meeting. This appointment did not extend to Mr. Wang Can's other responsibilities.