ZYY (08223) has announced that, following the receipt of a petition, the company has been actively engaging in negotiations with the petitioner to amicably resolve the dispute. The company hereby provides an update regarding the settlement arrangement between the company and the petitioner. While the petitioner's legal advisors are preparing the settlement agreement, the company and the petitioner will enter into the agreement, under which the company will repay the debt in full, and the petitioner will subsequently withdraw the petition. According to Section 182 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Chapter 32 of Hong Kong Law), any disposal of the company's property (including choses in action), any transfer of shares, or any change in the status of the company's shareholders made after the commencement of winding up (i.e., the petition date of April 29, 2026) will be void under Hong Kong law unless a validation order is obtained from the High Court. If the petition is subsequently withdrawn, dismissed, struck out, or permanently stayed, any disposal made on or after April 29, 2026, will not be affected. The company expects to enter into the settlement agreement with the petitioner in the near term, and the petition will be withdrawn by the petitioner shortly thereafter. Given that the processing time required to apply for a validation order is significantly longer than the anticipated time for the withdrawal of the petition, the company considers it inappropriate to apply for a validation order from the High Court at this stage.