CHINA CITY INFRASTRUCTURE GROUP LIMITED ("China City Infrastructure," Stock Code: 2349) announced that on 10 February 2026, its wholly-owned subsidiary (the “Purchaser”) entered into an agreement with Qianhai Jiesuan Company Limited (the “Vendor”) to acquire 60% of the equity (the “Sale Shares”) in Shenzhen Shi Zhilian Fei Chuang Technology Limited (the “Target Company”) at a total consideration of HK$3.3 million. The consideration is to be settled by the issuance of three-year zero-coupon Convertible Bonds in an equivalent principal amount of HK$3.3 million, convertible at a price of HK$0.30 per share.

The Target Company is focused on integrating artificial intelligence technology with software-as-a-service tools, aiming to provide intelligent decision support to various organizations. China City Infrastructure primarily operates in property development, property investment, and property management but intends to diversify its operations through this acquisition.

According to unaudited financial information, the Target Company recorded net losses of approximately HK$4.24 million and HK$0.72 million in the years ended 31 December 2024 and 2025, respectively. Upon completion, 60% of the Target Company will be held by the Purchaser, with 40% retained by the Vendor.

Under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, the transaction constitutes a discloseable transaction as certain percentage ratios exceed 5% but are below 25%. The issue of up to 11 million conversion shares upon full exercise of the Convertible Bonds will represent around 0.352% of China City Infrastructure’s existing issued share capital and 0.350% of the enlarged share capital. The company intends to utilize the General Mandate for the allotment and issuance of these conversion shares once the necessary approvals are obtained.