DMALL (02586) subsidiary Lingmei Intelligent Digital Core receives RMB 36.6667 million in capital increase.

DMALL (02586) announces that on September 30, 2026 (after trading hours), Lingmei Intelligent Digital Core (a non-wholly-owned subsidiary of the Company as at the date of this announcement) entered into a capital increase agreement with the joint subscribers (i.e., a company wholly owned by Ms. Zhang Kangrong and a partnership whose general partner is controlled by Ms. Zhang Kangrong), pursuant to which the joint subscribers agreed to subscribe for an aggregate of RMB 36.6667 million of new registered capital of Lingmei Intelligent Digital Core at a subscription price of RMB 1.00 per unit of registered capital, thereby collectively acquiring 55% equity interest in Lingmei Intelligent Digital Core. Upon completion of this capital increase, the registered capital of Lingmei Intelligent Digital Core will increase from RMB 30 million to RMB 66.6667 million, and the equity interest of Duodian (Shenzhen) Digital (a wholly-owned subsidiary of the Company) in Lingmei Intelligent Digital Core will decrease from 51% to 22.95%. As the Company will no longer have indirect control over Lingmei Intelligent Digital Core upon completion, Lingmei Intelligent Digital Core will cease to be a subsidiary of the Company, and its financial results will no longer be consolidated into the Company's consolidated financial statements. The introduction of the joint subscribers as investors in Lingmei Intelligent Digital Core through this capital increase will effectively supplement the working capital of Lingmei Intelligent Digital Core and support its business development. In addition, Lingmei Tongxin Partnership and Lingmei Partner Partnership may serve as platforms for implementing employee share incentive arrangements, which are expected to strengthen the alignment of interests between key personnel and Lingmei Intelligent Digital Core and support its long-term development. Upon completion, the Group will retain a 22.95% equity interest in Lingmei Intelligent Digital Core and will therefore still be able to benefit from any potential future appreciation of Lingmei Intelligent Digital Core. In light of the foregoing, the Directors (including the independent non-executive Directors) consider that the terms and conditions of the capital increase agreement are fair and reasonable, were entered into on normal commercial terms or better, and are in the overall interests of the Company and its shareholders.