Pak Tak International Limited released its quarterly update on actions aimed at removing the auditor’s disclaimer of opinion and improving its going-concern outlook.

1. Defaulted Bank Borrowings • Bank Loan 3: The principal of RMB22.57 million was fully settled in January 2026 after negotiations with the secured asset owner. • Bank Loan 2: The principal of RMB279.00 million, together with compounded and default interest, brought total outstanding obligations to roughly RMB341.50 million. These liabilities have been transferred to China Cinda Asset Management Co., Ltd., Shenzhen Branch via a debt-disposal arrangement. The Group is in discussions with the new creditor to renew and extend repayment terms.

2. Shareholder Support Substantial shareholders Zongchuan Investment Holding Co., Limited and Mr. Shen Yang remain informed of restructuring progress and are positioned to provide financial support when required.

3. Additional Financing Initiatives Management continues to explore new debt facilities, the pledging of selected investment properties, and potential disposals of non-current assets, with proceeds targeted at further debt reduction.

4. Working-Capital Management The Group is accelerating receivables collection to bolster operating cash flow.

5. Business Development Expansion of the iron-ore mining and milling segment is progressing, though the business has yet to reach full capacity. Management views this initiative as central to the Group’s long-term strategy.

The Board emphasized that restructuring efforts are ongoing and pledged to issue further updates in accordance with Hong Kong Listing Rules.