TONTINE WINES (00389) rejects the proposal for the major shareholder Wang Hexin to subscribe for new shares.

TONTINE WINES (00389) announced that on July 30, 2026, the company received a letter from a major shareholder, Mr. Wang He (who holds approximately 10% of the company's issued shares), which included a proposal regarding the subscription of 20% new shares at a price of HK$0.20 per share under special authorization. However, the proposal requested the company to immediately withdraw, terminate, annul, and/or otherwise avoid proceeding with the existing placing agreement dated July 26, 2026, and the company guaranteed the appointment of an executive director nominated by the proposer to oversee the utilization of the funds raised from the proposed subscription. The board of directors stated that there are multiple reasonable grounds for rejecting the proposal: this subscription constitutes a connected transaction that requires approval from independent shareholders, leading to significant uncertainty in the process; forcibly terminating the existing placing agreement would pose legal and reputational risks; and the request for interference in fund management undermines the company's normal governance structure, violating the directors' fiduciary duties to the enterprise. Furthermore, the successful execution of this subscription transaction would require multiple approvals, and the timeline for implementation cannot be guaranteed. Therefore, the board has resolved to reject the proposal. The board has authorized Mr. Sun Jialiang, the chairman, CEO, and executive director of the company, to represent the board in signing and sending a reply letter to the proposer.