Earnings release
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– 1 – Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. TEN PAO GROUP HOLDINGS LIMITED (Incorporated in the Cayman Islands with limited liability) (Stock Code: 1979) ʮ̡ ANNOUNCEMENT OF UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2026 The board (the “ Board”) of directors (the “ Directors”) of Ten Pao Group Holdings Limited (“Ten Pao ” or the “ Company”) hereby announces the unaudited consolidated results of the Company and its subsidiaries (together, the “ Group”) for the six months ended 30 June 2026 (the “ Period”), together with comparative figures for the six months ended 30 June 2025 or other dates/periods, as follows: FINANCIAL HIGHLIGHTS: • Revenue for the six months ended 30 June 2026 decreased by 9.5% to HK$2,666.8 million, as compared with the same period of last year. • Gross profit for the six months ended 30 June 2026 decreased by 16.4% to HK$440.5 million. Gross profit margin decreased by 1.4 percentage points to 16.5%, as compared with the same period of last year. • Profit before income tax for the six months ended 30 June 2026 decreased by 51.2% to HK$123.6 million, as compared with the same period of last year. • Profit attributable to owners of the Company for the six months ended 30 June 2026 decreased by 49.1% to HK$107.7 million, as compared with the same period of last year. • The Board has resolved to distribute an interim dividend of HK4.2 cents per ordinary share for the six months ended 30 June 2026 (2025: HK6.2 cents per ordinary share). The interim dividend will be payable in cash, with an option provided to the shareholders of the Company to receive new and fully paid shares in lieu of cash, in whole or in part, under a scrip dividend scheme.
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– 2 – REVIEW OF UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION The unaudited interim financial information has been reviewed by the Company’s independent auditor, PricewaterhouseCoopers, in accordance with the Hong Kong Standard on Review Engagements 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. The review report of the independent auditor will be included in the interim report to be sent to the shareholders of the Company (the “ Shareholders ”). INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS (All amounts in HK dollar thousands unless otherwise stated) Six months ended 30 June Notes 2026 2025 (Unaudited) (Unaudited) Revenue 6 2,666,754 2,948,051 Cost of sales 8 (2,226,286) (2,421,393) Gross profit 440,468 526,658 Other income 7 25,185 9,262 Other (losses)/gains — net 7 (18,017) 28,150 Selling expenses 8 (83,604) (68,602) Administrative expenses 8 (238,614) (241,849) Net impairment losses on financial assets (1,446) (1,275) Operating profit 123,972 252,344 Finance income 9 4,448 8,024 Finance expenses 9 (4,803) (7,059) Finance (expenses)/income — net (355) 965 Profit before income tax 123,617 253,309 Income tax expenses 10 (15,931) (41,129) Profit for the period attributable to: Owners of the Company 107,717 211,650 Non-controlling interests (31) 530 107,686 212,180 Earnings per share for the period — basic and diluted per share 11 HK$0.10 HK$0.21
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– 3 – INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (All amounts in HK dollar thousands unless otherwise stated) Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) Profit for the period 107,686 212,180 Other comprehensive income Items that may be reclassified subsequently to profit or loss Currency translation differences 60,999 30,849 60,999 30,849 Total comprehensive income for the period attributable to: Owners of the Company 168,716 242,499 Non-controlling interests (31) 530 168,685 243,029
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– 4 – INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (All amounts in HK dollar thousands unless otherwise stated) Notes 30 June 2026 31 December 2025 (Unaudited) (Audited) ASSETS Non-current assets Land use rights 4,882 4,977 Property, plant and equipment 13 1,504,236 1,450,898 Right-of-use assets 144,705 133,038 Investment properties 5,400 5,700 Intangible assets 59,073 51,744 Deferred income tax assets 101,992 83,215 Financial assets at fair value through profit or loss 127,222 111,403 Long-term receivables 78,417 77,819 Prepayments for the purchase of property, plant and equipment and other receivables 19,596 13,586 2,045,523 1,932,380 Current assets Inventories 14 1,256,179 954,846 Trade and other receivables 15 2,107,456 1,650,537 Amounts due from related parties 1,555 1,351 Derivative financial assets 2,260 — Restricted bank deposits 378,911 702,104 Cash and cash equivalents 165,765 282,369 3,912,126 3,591,207 Total assets 5,957,649 5,523,587 EQUITY Capital and reserves attributable to owners of the Company Share capital 16 10,304 10,304 Share premium 16 162,426 162,426 Other reserves 480,198 403,547 Retained earnings 1,644,542 1,604,831 2,297,470 2,181,108 Non-controlling interests (3,545) (3,396) Total equity 2,293,925 2,177,712
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– 5 – INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (CONTINUED) (All amounts in HK dollar thousands unless otherwise stated) Notes 30 June 2026 31 December 2025 (Unaudited) (Audited) LIABILITIES Non-current liabilities Lease liabilities — non-current 40,068 33,017 Deferred income tax liabilities 103,792 97,162 Deferred government grants 47,949 41,815 191,809 171,994 Current liabilities Trade and other payables 18 2,324,266 2,268,484 Contract liabilities 52,748 40,325 Amounts due to related parties 36,137 38,684 Dividend payable 68,022 12 Income tax liabilities 16,648 19,587 Lease liabilities — current 15,979 10,582 Short-term bank borrowings 17 958,115 796,207 3,471,915 3,173,881 Total liabilities 3,663,724 3,345,875 Total equity and liabilities 5,957,649 5,523,587
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– 6 – NOTES TO THE INTERIM FINANCIAL INFORMATION (All amounts in HK dollar thousands unless otherwise stated) 1 GENERAL INFORMATION Ten Pao Group Holdings Limited (ʮ̡ ) (the “ Company”) was incorporated in the Cayman Islands on 27 January 2015 as an exempted company with limited liability under the Companies Act, Cap 22 (Law 3 of 1961, as consolidated and revised) of the Cayman Islands. The address of the Company’s registered office is Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands. The Company, an investment holding company, and its subsidiaries (collectively, the “ Group”) are principally engaged in the developing, manufacturing and sales of switching power supply units for consumer products and smart chargers and controllers for industrial use in the People’s Republic of China (the “ PRC”). The controlling shareholder of the Group is Mr. Hung Kwong Yee (Έಉ ) (“ Chairman Hung”). On 11 December 2015, shares of the Company were listed on The Stock Exchange of Hong Kong Limited (the “ Stock Exchange ”). This interim financial information (the “ Interim Financial Information ”) is presented in Hong Kong dollar (“HK$”) thousands, unless otherwise stated. This Interim Financial Information was approved for issue on 28 August 2026 and has not been audited. 2 BASIS OF PREPARATION This Interim Financial Information for the six months ended 30 June 2026 (the “ Period”) has been prepared in accordance with Hong Kong Accounting Standard (“ HKAS”) 34 “Interim Financial Reporting” issued by Hong Kong Institute of Certified Public Accountants. This Interim Financial Information should be read in conjunction with the annual financial statements for the year ended 31 December 2025 (the “2025 Financial Statements ”), which have been prepared in accordance with Hong Kong Financial Reporting Standards (“ HKFRSs”). 3 ACCOUNTING POLICIES The accounting policies applied are consistent with those of the 2025 Financial Statements, as described in those annual financial statements, except for the adoption of amendments to HKASs effective for the financial year beginning 1 January 2026. 3.1 New and amended standards adopted by the Group A number of new or amended standards became applicable for the current reporting period. The Group did not change its accounting policies or make retrospective adjustments as a result of adopting these amended standards. The Directors consider that application of these new standards, amendments and interpretation to HKFRSs in the current period has had no material impact on the Group’s financial performance and positions for the current and prior periods and on the disclosures set out in this Interim Financial Information.
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– 7 – 3 ACCOUNTING POLICIES (CONTINUED) 3.2 Impact of standards issued but not yet applied by the Group Certain new accounting standards and interpretations have been published that are not mandatory for the current reporting period and have not been early adopted by the Group. Effective for accounting periods beginning on or after HKFRS 18 Presentation and Disclosure in Financial Statements 1 January 2027 HKFRS 19 Subsidiaries without Public Accountability: Disclosures 1 January 2027 Amendment to HKAS 21 Translation to a Hyperinflationary Presentation Currency 1 January 2027 HKFRS 20 Regulatory Assets and Regulatory Liabilities 1 January 2029 Amendments to HKFRS 10 and HKAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint venture To be determined Amendments to Illustrative Examples on HKFRS 7, HKFRS 18, HKAS 1, HKAS 8, HKAS 36 and HKAS 37 Disclosures about Uncertainties in the Financial Statements Not applicable These standards, amendments or interpretations are not expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions, except for certain presentation adjustments that might arise from the adoption of HKFRS 18. HKFRS 18 will replace HKAS 1 Presentation of financial statements, introducing new requirements that will help to achieve comparability of the financial performance of similar entities and provide more relevant information and transparency to users. Even though HKFRS 18 will not impact the recognition or measurement of items in the financial statements, its impacts on presentation and disclosure are expected to be pervasive, in particular those related to the statement of financial performance and providing management-defined performance measures within the financial statements. 4 ESTIMATES The preparation of the Interim Financial Information requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing this Interim Financial Information, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the 2025 Financial Statements.
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– 8 – 5 FINANCIAL RISK MANAGEMENT 5.1 Financial risk factors The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, price risk, cash flow and fair value interest rate risk), credit risk and liquidity risk. This Interim Financial Information does not include all financial risk management information and disclosures required in the annual financial statements, and should be read in conjunction with them. There have been no changes in the risk management function since 31 December 2025 or in any risk management policies since 31 December 2025. 5.2 Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash and bank balances. The Group’s liquidity risk is further mitigated through the availability of financing through its own cash resources and the availability of banking facilities to meet its financial commitments. There are loan covenant terms for certain bank borrowings. The Group has complied with the financial covenants of its borrowing facilities during the period ended 30 June 2026 (30 June 2025: None). In the opinion of the Directors, the Group does not have any significant liquidity risk. 6 SEGMENT INFORMATION The chief operating decision maker has been identified as the executive Directors. The executive Directors review the Group’s internal reporting in order to assess performance and allocate resources and have determined the operating segments based on the internal reports that are used to make strategic decisions. The executive Directors considered the nature of the Group’s business and determined that the Group’s electric charging products can be categorised into six reportable segments as follows: (i) smart chargers and controllers, (ii) media and entertainment, (iii) telecommunication, (iv) new energy business, (v) lighting, and (vi) others. Segment information for the interim condensed consolidated statement of profit or loss is set out below: Smart chargers and controllers Media and entertainment Tele- communication New energy business Lighting Others Total Six months ended 30 June 2026 (unaudited) Revenue Revenue from external customers — At a point in time 1,014,307 538,773 515,067 320,237 164,117 114,253 2,666,754 Segment results 187,560 135,752 48,922 11,571 38,628 18,035 440,468 Other income 25,185 Other losses — net (18,017) Selling expenses (83,604) Administrative expenses (238,614) Net impairment losses on financial assets (1,446) Finance expenses — net (355) Profit before income tax 123,617
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– 9 – 6 SEGMENT INFORMATION (CONTINUED) Smart chargers and controllers Media and entertainment Tele- communication New energy business Lighting Others Total Six months ended 30 June 2025 (unaudited) Revenue Revenue from external customers — At a point in time 1,170,307 221,977 663,505 562,244 207,137 122,881 2,948,051 Segment results 279,599 41,713 85,430 44,969 52,361 22,586 526,658 Other income 9,262 Other gains — net 28,150 Selling expenses (68,602) Administrative expenses (241,849) Net impairment losses on financial assets (1,275) Finance income — net 965 Profit before income tax 253,309 Non-current assets, other than financial instruments and deferred income tax assets, by country: 30 June 2026 30 June 2025 (Unaudited) (Unaudited) Mainland China (excluding Hong Kong) 1,443,590 1,366,030 Vietnam 176,575 146,525 Hungary 60,320 64,966 Hong Kong 15,463 10,326 Others 41,944 33,820 1,737,892 1,621,667
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– 10 – 7 OTHER INCOME AND OTHER (LOSSES)/GAINS — NET Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) Other income Sales of scrap materials 11,549 4,867 Interest income 3,749 — Sales of raw materials, samples and molds 3,194 2,209 Safety fee income 535 729 Others 6,158 1,457 25,185 9,262 Other (losses)/gains — net Fair value changes on derivative financial instruments — 1,336 Fair value changes on financial assets at fair value through profit or loss — 3,188 Fair value changes on investment properties (300) (300) Net foreign exchange (losses)/gains (36,558) 15,565 Government grants 7,259 7,920 Gain on disposal of property, plant and equipment 9,659 2,816 Others 1,923 (2,375) (18,017) 28,150 8 EXPENSES BY NATURE Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) Raw materials and consumables used (excluding research and development expenses) 1,945,480 1,923,878 Employee benefit expenses (excluding research and development expenses) 386,267 394,462 Changes in inventories of finished goods and work in progress (114,922) 111,136 Depreciation, amortisation and impairment charges (excluding research and development expenses) 83,140 72,091 Research and development expenses — Employee benefit expenses 69,160 76,792 — Raw materials, consumables used and others 21,730 23,424 — Depreciation and amortisation 10,438 7,946 (Reversal of)/Allowance for impairment of inventory (1,701) 58 Auditors’ remuneration 1,950 1,678 Other expenses 146,962 120,379 Total cost of sales, selling expenses and administrative expenses 2,548,504 2,731,844
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– 11 – 9 FINANCE INCOME AND EXPENSES Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) Finance income: Interest income 4,448 8,024 Finance expenses: Interest on bank borrowings (4,228) (6,255) Interest on lease liabilities (575) (804) Finance expenses expensed (4,803) (7,059) Finance (expenses)/income — net (355) 965 10 INCOME TAX EXPENSES Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) Current income tax 26,518 43,547 Deferred income tax (10,587) (2,418) 15,931 41,129 (a) Cayman Islands income tax The Company is incorporated in the Cayman Islands as an exempted company with limited liability under the Companies Act of Cayman Islands and accordingly, is exempted from Cayman Islands income tax. (b) British Virgin Islands (“BVI”) and Samoa income tax No provision for income tax in BVI and Samoa has been made as the Group has no income assessable to income tax in BVI and Samoa for the Period. (c) PRC corporate income tax (“CIT”) CIT is provided on the assessable income of entities within the Group incorporated in the PRC, calculated in accordance with the relevant regulations of the PRC after considering the available tax benefits. Pursuant to the PRC Corporate Income Tax Law passed by the Tenth National People’s Congress on 16 March 2007 (the “CIT Law”), the CIT rate for domestic and foreign enterprises has been unified at 25%, effective from 1 January 2008.
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– 12 – 10 INCOME TAX EXPENSES (CONTINUED) (c) PRC corporate income tax (“CIT”) (Continued) Ten Pao Electronic (Huizhou) Co., Ltd., Dazhou Ten Pao Jin Hu Electronic Co., Ltd., Shanxi Huifeng Electronic Technology Co., Ltd., Huizhou Ten Pao Chuangneng Technology Co., Ltd. and Ten Pao Precision Technology (Huizhou) Co., Ltd. are recognised as “New and High Technology Enterprises” and enjoy a preferential CIT rate of 15%. Their CIT rate for the Period was 15% (2025 interim: 15%). (d) Hong Kong profits tax Subsidiaries in Hong Kong are subject to 16.5% income tax rate before 2018. Under the current Hong Kong Inland Revenue Ordinance, from the year of assessment 2018/2019 onwards, the subsidiaries in Hong Kong are subject to profits tax at the rate of 8.25% on assessable profits up to HK$2,000,000, and 16.5% on any part of assessable profits over HK$2,000,000. The payments of dividends by these companies to their shareholders are not subject to any Hong Kong withholding tax. (e) Corporate income tax in other jurisdictions The income tax expense of the Group’s other overseas subsidiaries is calculated in accordance with the tax laws and regulations of their respective jurisdictions. These subsidiaries are principally located in Hungary, Singapore, Vietnam, the United States and Mexico, with statutory income tax rates of 9%, 17%, 20%, 21% and 30%, respectively, the 21% rate being the U.S. federal statutory rate, exclusive of state and local taxes. Under the laws and regulations of Vietnam, Giga Electronics (Vietnam) Company Limited is entitled to an income tax exemption for the two years ended 31 December 2022 and a 50% reduction for the four years from 1 January 2023. Accordingly, Giga Electronics (Vietnam) Company Limited enjoyed a reduced profits tax rate of 10% for the Period. (f) PRC withholding income tax According to the CIT Law, with effect from 1 January 2008, a withholding income tax of 10% has been levied on the immediate holding companies outside the PRC when their PRC subsidiaries declare dividend out of profits earned after 1 January 2008. A lower 5% withholding income tax rate may be applied when the immediate holding companies of the PRC subsidiaries are established in Hong Kong and fulfil requirements under the tax treaty arrangements between the PRC and Hong Kong. Ten Pao Electronic (Samoa) Co., Ltd. has become a resident of the Hong Kong Special Administrative Region under the “Arrangement between the Mainland of China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income” for the Period.
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– 13 – 11 EARNINGS PER SHARE (a) Basic earnings per share Basic earnings per share is calculated by dividing the profit for the Period by the weighted average number of ordinary shares in issue for the Period. Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) Profit attributable to owners of the Company (HK$’000) 107,717 211,650 Weighted average number of shares issued (thousands) 1,030,389 1,030,389 Basic earnings per share (HK cents) 10 21 (b) Diluted earnings per share As at 30 June 2026, the diluted earnings per share approximates basic earnings per share (30 June 2025: same). 12 DIVIDENDS The Board resolved on 28 August 2026 to declare an interim dividend of HK4.2 cents per ordinary share of the Company for the six months ended 30 June 2026 (2025 interim: HK6.2 cents per ordinary share). This interim dividend, amounting to HK$43,479,000 (2025 interim: HK$63,884,000), which has not been recognised as a liability in this Interim Financial Information, will be payable in cash, with an option provided to the shareholders of the Company to receive new and fully paid shares in lieu of cash, in whole or in part, under a scrip dividend scheme. On 12 June 2026, the Shareholders approved a final dividend of HK6.6 cents per ordinary share for the year ended 31 December 2025, amounting to HK$68,006,000. Shareholders were offered a scrip dividend alternative, under which they could elect to receive new ordinary shares in lieu of cash for all or part of their dividend entitlement.
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– 14 – 13 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment Net book amount as at 31 December 2025 1,450,898 Additions 89,849 Disposals (3,020) Currency translation differences 48,535 Depreciation/amortisation (82,026) Net book amount as at 30 June 2026 (unaudited) 1,504,236 Property, plant and equipment Net book amount as at 1 January 2025 1,253,639 Additions 302,054 Disposals (3,494) Impairment charges (1,396) Currency translation differences 36,583 Depreciation/amortisation (136,488) Net book amount as at 31 December 2025 (audited) 1,450,898 14 INVENTORIES 30 June 2026 31 December 2025 (Unaudited) (Audited) Raw materials 584,544 396,749 Work in progress 239,253 175,924 Finished goods 520,714 469,121 1,344,511 1,041,794 Less: allowance for impairment (88,332) (86,948) 1,256,179 954,846 The movements of allowance for impairment are analysed as follows: Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) At 1 January 86,948 92,872 Currency translation differences 3,085 1,286 Allowance for write-down, net (1,701) 58 At 30 June 88,332 94,216
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– 15 – 15 TRADE AND OTHER RECEIVABLES 30 June 2026 31 December 2025 (Unaudited) (Audited) Trade receivables 1,754,354 1,397,439 Less: allowance for impairment of trade receivables (8,064) (6,421) Trade receivables, net 1,746,290 1,391,018 Value added tax allowance 235,917 160,663 Prepayments 44,175 12,195 Receivables from government 41,684 40,084 Export tax refund receivables 16,135 27,490 Deposits 8,704 3,893 Employee welfare 3,983 3,491 Loan to third party 2,303 4,429 Advances to employees 586 564 Bills receivable 138 263 Others 7,541 6,447 2,107,456 1,650,537 The credit period granted to customers is generally between 30 and 150 days based on invoices date. The ageing analysis of the trade receivables from the date of sales is as follows: 30 June 2026 31 December 2025 (Unaudited) (Audited) Less than 3 months 1,425,862 1,139,653 More than 3 months but not exceeding 1 year 299,585 256,118 More than 1 year 28,907 1,668 1,754,354 1,397,439 As at 30 June 2026, the carrying amounts of the receivables were approximate to their fair values. As at 30 June 2026, the Group’s bank borrowings were secured over trade and other receivables with carrying amounts of HK$72,182,000 (31 December 2025: Nil) (Note 17(a)).
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– 16 – 16 SHARE CAPITAL AND SHARE PREMIUM Ordinary shares, issued and fully paid: Number of Shares Share capital Share premium Total HK$’000 HK$’000 HK$’000 As at 1 January 2025, 31 December 2025, 1 January 2026 and 30 June 2026 1,030,388,965 10,304 162,426 172,730 17 BORROWINGS 30 June 2026 31 December 2025 (Unaudited) (Audited) Current Bank borrowings — secured (a) 379,185 565,753 — unsecured 578,930 230,454 Total short-term bank borrowings 958,115 796,207 Movement in borrowings is as follows: Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) Opening balance as at 1 January 796,207 650,741 Proceeds from borrowings 945,312 583,747 Repayments of borrowings (796,763) (632,592) Currency translation differences 13,359 8,880 Closing balance as at 30 June 958,115 610,776
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– 17 – 17 BORROWINGS (CONTINUED) (a) As at 30 June 2026, bank borrowings amounting to HK$379,185,000 (31 December 2025: HK$565,753,000) were secured over the following assets: 30 June 2026 31 December 2025 (Unaudited) (Audited) Restricted bank deposits 303,668 584,099 Trade and other receivables (Note 15) 72,182 — 375,850 584,099 18 TRADE AND OTHER PAYABLES 30 June 2026 31 December 2025 (Unaudited) (Audited) Trade payables 1,591,536 1,375,238 Notes payable 306,872 409,116 Wages and staff welfare benefits payable 265,071 317,488 Accrual for expenses and other payables 127,952 133,129 Payables in relation to share-based transactions of subsidiaries 24,275 24,676 Endorsed note receivables without being derecognized and not yet due 389 263 Other taxes payable 8,171 8,574 2,324,266 2,268,484 The ageing analysis of trade payables based on invoices date is as follows: 30 June 2026 31 December 2025 (Unaudited) (Audited) Less than 3 months 1,491,266 1,259,712 More than 3 months but not exceeding 1 year 84,391 108,502 More than 1 year 15,879 7,024 1,591,536 1,375,238
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– 18 – MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS REVIEW Overview Ten Pao Group Holdings Limited is an industry-leading intelligent power supply solutions provider, specializing in the design, research and development (“ R&D”) and manufacturing of a diverse range of power supply products and related electronic solutions. Its products are widely used in industrial power supplies, consumer electronics, smart controllers (PCBA, a core component of electronic devices that connects and controls various sensors, communication modules and processing units to deliver intelligent and interconnected functionalities), new energy equipment and other end-user applications. Over the years, the Group has actively expanded its presence in the markets of industrial power supplies, new energy products and consumer power supplies, establishing a diversified product portfolio covering a wide range of application scenarios and customer groups, striving to provide global customers with one-stop power supply solutions. Riding on the rapid development of emerging technologies such as artificial intelligence (“ AI”), high-performance computing and intelligent manufacturing, the Group has also upgraded its product portfolio by actively expanding into high-value-added businesses, including smart controllers and AI-related products. Leveraging its years of accumulated R&D expertise, product innovation capabilities and global manufacturing footprint, the Group is well positioned to capture new opportunities arising from the development of high-end intelligent power supplies and industrial intelligent transformation. Meanwhile, the Group has also been actively promoting green and low-carbon development by integrating sustainability concepts into product design and manufacturing operations. In February 2026, Ten Pao was officially recognized as a “National Green Factory” in the PRC, marking a key milestone in energy conservation, emission reduction, resource recycling and the development of a green manufacturing system. This recognition represents an important achievement in the Group’s journey towards sustainable development, and is expected to further strengthen the Group’s competitiveness in the international market and among high-end customers.
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– 19 – Looking back at the first half of 2026, although the global industrial power supply market was projected to grow from approximately US$13.32 billion in 2026 to US$19.50 billion by 2032, with a positive medium to long-term outlook, the market remained in a period of deep adjustment in the short term. 1 Specifically, geopolitical conflicts in the Middle East continued to drive up global energy and industrial raw material prices, with prices of major raw materials such as precious metals and electronic components showing notable volatility. In addition, Renminbi (“ RMB”) maintained a strong performance in the Period. All these factors exerted obvious pressure on the Group’s production costs and profitability. 2 Meanwhile, the global slowdown and weakened corporate investment intentions led to slower than expected progress in downstream projects, and an overall more cautious approach to ordering. Compared to the same period last year, when some customers stocked up in advance in response to expectations of adjustments in global trade and tariff policies, the pace of orders slowed significantly during the Period. Despite numerous external challenges, the Group’s overall performance demonstrated strong business resilience, thanks to technological advantages built up over the years, its solid customer base and well-established global production capacity layout. On the one hand, its diversified product portfolio covering the three major business segments of industrial power supplies, new energy products and consumer power supplies effectively mitigated the risks of a single application area. On the other hand, the Group’s reliable product quality, production bases spanning across the Chinese Mainland and overseas, and comprehensive one-stop solutions enabled it to maintain stable business relationships with multiple globally renowned brands and Fortune Global 500 companies, with core customers contributing steadily to the revenue. In the face of a complex and ever-changing market environment, the Group fully leveraged its global production footprint and procurement network advantages across China, Vietnam, Mexico and Hungary. Through flexible allocation of production capacity and supply chain resources from various locations, the Group was able to improve procurement efficiency and cost competitiveness. With the Huizhou Intelligent Manufacturing Industrial Park fully operational, the Group continued to increase its investment in the R&D of smart controllers, high-power power supply products and AI-related products, laying the foundation for future expansion into high-value-added markets and enhancing overall competitiveness. Leveraging its solid operational foundation and forward-looking strategic deployment, the Group maintained stable operating performance during the Period. However, due to overall slowdown in market demand, adjustments in customer orders and the high base effect in the corresponding period last year, revenue decreased by approximately 9.5% year-on-year to HK$2,666.8 million (2025 interim: HK$2,948.1 million). Among the Group’s business segments, the media and entertainment segment had relative success, with segment revenue 1 https://www.researchandmarkets.com/report/industrial-power-supply 2 https://www.oecd.org/en/publications/oecd-economic-outlook-volume-2026-issue-1_2d1956f0-en/full-report. html
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– 20 – increasing by approximately 142.7% year-on-year. Affected by soft market demand, persistently high oil prices and key raw material costs, and the appreciation of RMB, gross profit decreased by approximately 16.4% year-on-year to HK$440.5 million (2025 interim: HK$526.7 million), with gross profit margin declining to 16.5% (2025 interim: 17.9%). Nevertheless, the Group continued to optimize its global supply chain by flexibly allocating production capacity and procurement, which partially offset rising cost pressure, and allowed overall gross profit margin to remain at a healthy level. After taking into account the Group’s continued investment in R&D, ongoing intelligent manufacturing upgrades and the corresponding depreciation expenses arising from the full operation of the Huizhou Intelligent Manufacturing Industrial Park, profit attributable to owners of the Company decreased by approximately 49.1% year-on-year to HK$107.7 million (2025 interim: HK$211.7 million). Basic earnings per share also decreased from HK21 cents in the same period last year to HK10 cents. The Group has consistently maintained a stable and sustainable dividend policy. After carefully considering the Group’s profitability, cash flow performance, future business development and capital expenditure requirements, the Board has recommended the payment of an interim dividend of HK4.2 cents per ordinary share for the six months ended 30 June 2026 (2025 interim: HK6.2 cents per ordinary share), representing a payout ratio of approximately 40.4%. The Group remains committed to sharing its operating and financial achievements with its Shareholders to deliver long-term and sustainable returns. Market and Business Review Benefiting from the burgeoning global demand for industrial automation, intelligent manufacturing, AI advancement, high-performance computing and cloud data centers, high-power and high-efficiency power supply solutions continue to hold significant long-term growth potential. According to research data, the global industrial power supply market is projected to grow from US$14.24 billion in 2026 to US$24.76 billion in 2034, with a projected compound annual growth rate (“ CAGR”) of 7.2% 3, reflecting the prevailing market confidence in the medium-to-long-term prospects of industrial power supply products. During the reporting period, the industrial power supply segment (smart chargers and controllers) remained one of the Group’s core business segments, accounting for approximately 38.0% of total revenue (2025 interim: 39.7%). The Group maintains a comprehensive product portfolio of over 300 smart chargers and controllers, which are widely applied in industrial-grade power tools and deliver high-power supply solutions for high-performance computing (“ HPC”) applications, such as cloud computing data centers, supercomputing/HPC systems and enterprise-level servers. In the first half of 2026, the smart charger business witnessed slight growth, whereas the performance of smart controllers declined, affected by macroeconomic uncertainty, price volatility of key raw materials and sustained supply chain adjustments. Compounded by customers adopting a more conservative approach to order placement, adjustments in procurement patterns and certain order delays, segment revenue slightly declined by 13.3% year-on-year to HK$1,014.3 million (2025 interim: HK$1,170.3 million). 3 https://www.fortunebusinessinsights.com/zh/industrial-power-supply-market-112354
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– 21 – The consumer power supply segment features a diversified portfolio of more than 1,400 products, widely applied in telecommunications, media and entertainment, lighting and other applications. During the reporting period, segment revenue increased by 9.6% year-on-year to HK$1,332.2 million (2025 interim: HK$1,215.5 million), representing approximately 50.0% of the Group’s total revenue (2025 interim: 41.2%). Despite macroeconomic headwinds, the Group’s forward-looking strategic deployment yielded tangible results, with previously acquired customers gradually confirming orders in the Period and contributing to revenue, which helped offset the decline in some of the more traditional applications. In particular, the Group made notable progress in telecommunications, media and entertainment applications. Despite lingering softness in certain traditional applications, the telecommunications power supply market demonstrated robust resilience, buoyed by global 5G infrastructure upgrades and growing demand for high-speed, reliable connectivity and fast-charging capabilities in smart power supply terminals. Capitalizing on this trend, the Group introduced advanced fast-charging technologies and successfully delivered products to a significant telecommunications customer acquired last year. Relevant products have entered mass production during the Period and begun to generate revenue. Concurrently, the network device market has witnessed a technological upgrade cycle, with its market potential continuing to unfold amid the trends of Wi-Fi technology upgrades, smart home adoption, and accelerating demand for high-speed connectivity. Having previously positioned itself in next-generation routers equipped with Battery Backup Unit (BBU), Ten Pao successfully secured orders from another renowned international telecommunications customer. The Group received high-volume orders as the strategic relationship deepened, laying a strong operational foundation for the sub-segment. The new energy business is another important segment of the Group, focusing on three core sectors including energy storage systems, automotive electronics and charging modules. During the Period, the segment accounted for 12.0% of total revenue (2025 interim: 19.1%). Through proactive communication and engagement with key customers, Ten Pao strategically adjusted order placement and delivery schedules of its product mix to enhance overall gross profit margin. As a result, segment revenue declined 43.0% year-on-year to HK$320.2 million (2025 interim: HK$562.2 million). Despite short-term revenue impacts from the structural adjustments, the Group remained well-positioned to capture global trends in energy transition and the green mobility industry. With the increasing global adoption of electric vehicles and the accelerated construction of charging infrastructure, the Group has actively increased its R&D investment in next-generation high-efficiency, high-power charging modules, and continued to explore other application scenarios. During the Period, new products targeting on the ‘green mobility’ sector have also been launched into the market and have begun to contribute to revenue, further reinforcing the Group’s market position in sustainable power solutions.
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– 22 – Prospect Looking back at the first half of 2026, persistent macroeconomic slowdown, compounded by inflationary pressures, heightened geopolitical tensions, trade frictions and a high comparison base from the prior-year period, weighed on operational performance. Nevertheless, supported by the Group’s diversified product portfolio, deep strategic relationships with key customers and a robust global fulfilment network, Ten Pao continued to demonstrate excellent resilience against risks and deliver stable overall financial performance. In terms of industry prospects, the growth opportunities brought about by the global energy transition, the explosive growth of AI computing power and intelligent upgrades across end markets remain intact. According to industry research reports, the global energy storage system market is projected to expand at a CAGR of 21.9% from 2026 to 2033. 4 It is expected that the Group’s continued development of energy storage power supply products will directly benefit from the rapid expansion of the global energy storage market. In the field of AI computing power, the growth rate of the AI server power supply market is even faster, with a projected CAGR of 45% from 2025 to 2031. 5 As an essential component of various smart devices, smart controllers are set to grow alongside the expanding downstream applications, with a forecasted CAGR of 6.9% between 2024 and 2030. 6 In response to the above development trends, Ten Pao will focus on improving the energy efficiency, system adaptability and integration capabilities of its smart controllers, further expanding its high-end smart controller business and continuously increasing R&D investment in related high-growth areas. The Group will seek to expand into the fastest growing application scenarios such as electric vehicles and consumer electronics, fully capturing the opportunities brought about by the structural growth of the industry. On this basis, the Group will also continue to improve its diversified production layout according to customer needs, and actively enhance production efficiency at the Huizhou Intelligent Manufacturing Industrial Park, leveraging the advantages of its dedicated smart controller production lines to flexibly meet the customization and mass production needs of different customers. In addition, the Group will continue to invest in automated production equipment, intelligent logistics systems and process optimization to further enhance the technological level of its smart controller business and consolidate its leading position in the high-end smart power supply market. Looking ahead to the second half of the year, with downstream customers gradually digesting their inventories and the second half of the year typically being the peak season for the power supply market, rigid replenishment and delivery demands are to be expected. At the end of the reporting period, orders from the Group’s core customers have already begun to show signs of recovery. Therefore, the Group expects its business performance in the second half of the year to also see a certain degree of recovery. To fully capture the peak-season demand, the Group will closely monitor market changes, secure quality customers at home and abroad, and deepen strategic partnerships with existing internationally renowned brand customers. 4 https://www.giiresearch.com/report/grvi2040335-energy-storage-systems-market-size-share-trends.html 5 https://www.businessresearchinsights.com/market-reports/ai-server-power-supply-market-129376 6 https://www.strategicmarketresearch.com/market-report/printed-circuit-board-assembly-pcba-market
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– 23 – In terms of supply chain management and cost control, the Group will continue to leverage its global supply chain synergies to achieve a balance between maintaining cost competitiveness and product quality. In the face of changes in the macro cost environment, the Group will work closely with customers to continuously optimize product pricing arrangements and jointly address the impact of rising costs. At the same time, the Group will maintain rigorous cost control and take multiple measures to improve profitability, offsetting the pressure from external economic factors. The Group remains firmly confident in its long-term development prospects. While promoting capacity upgrading, strengthening the global sales network and ensuring sustainable business development, Ten Pao will also prudently formulate Shareholders’ reward plans. The Group will, as always, uphold a pragmatic attitude, continue to capture market opportunities, and strive to create long-term value for all Shareholders. LIQUIDITY AND FINANCIAL RESOURCES The Group maintains a strong and healthy balance sheet. As at 30 June 2026, net current assets amounted to HK$440.2 million as compared with HK$417.3 million as at 31 December 2025. As of 30 June 2026, current ratio was 1.13 times (31 December 2025: 1.13 times) (current ratio is calculated by using the following formula: current assets/current liabilities). Gearing ratio was 41.8% as at 30 June 2026 (31 December 2025: 36.6%) (gearing ratio is calculated by using the following formula: total borrowings/total equity). The increase in the gearing ratio was mainly due to the increase in short term borrowings which were used to lock up certain electronic components facing continuous price surge and occurrence of stock- out during the Period. Net cash used in operating activities was HK$467.2 million for the Period (six months ended 30 June 2025: generated HK$99.7 million), which was mainly due to cash used in operations of HK$440.1 million. During the Period, the Group has extended the credit to certain customers with growing order volume and also significant fundings used to lock up certain electronic components. Net cash used in investing activities for the Period was HK$87.7 million (six months ended 30 June 2025: HK$230.4 million) as the Group has acquired property, plant and equipment, amounting to HK$90.3 million (six months ended 30 June 2025: HK$163.3 million). During the Period, net cash generated from financing activities was HK$439.5 million (six months ended 30 June 2025: HK$3.1 million).
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– 24 – DEBT MATURITY PROFILE The maturity profile of the Group’s borrowing is set out below: 30 June 2026 31 December 2025 HK$’000 HK$’000 (Unaudited) (Audited) Within 1 year 958,115 796,207 Between 1 and 2 years — — Between 2 and 5 years — — 958,115 796,207 FINANCIAL RISK MANAGEMENT Foreign Exchange Risk The Group operates mainly in the PRC, with a notable portion of its revenue derived from its export sales to overseas countries. The Group is exposed to foreign exchange risks, in particular fluctuations in currency exchange rates of HK$ and USD against RMB. The Group generates a notable portion of revenue and receivables in USD and HK$, while its cost of sales is primarily denominated in RMB. For the Period, the Group’s revenue denominated in USD and HK$ amounted to approximately 50.0% of its total revenue (six months ended 30 June 2025: 48.7%). The Group manages its foreign exchange risk by performing regular reviews of the Group’s net foreign exchange exposures and it may enter into certain forward foreign exchange contracts, when necessary, to manage its exposure against foreign currencies and to mitigate the impact on exchange rate fluctuations. During the Period, no forward foreign exchange contracts had been entered into by the Group as the Group did not consider there was any risk associated with exchange rate fluctuation that may adversely affect the results of the Group. Cash Flow and Fair Value Interest Rate Risk As the Group has no significant interest-bearing assets (other than bank balances and cash), the Group’s income and operating cash flows are substantially independent of changes in market interest rates. As of 30 June 2026, the Group had bank borrowings of HK$958.1 million (31 December 2025: HK$796.2 million) which were primarily denominated in HK$, USD and RMB. Credit Risk The Group has no significant concentrations of credit risk. The carrying amounts of trade receivables, deposits and other receivables, bank balances and cash included in the interim condensed consolidated balance sheet represented the Group’s maximum exposure to credit
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– 25 – risk in relation to its financial assets. The Group has policies in place to ensure credit terms are only granted to customers with an appropriate credit history, and credit evaluations on them were performed periodically, taking into account their financial position, past experience and other factors. For customers to whom no credit terms were offered, the Group generally requires them to pay deposits and/or advances prior to the delivery of products. The Group typically does not require collaterals from customers. Provisions are made for the balances when they are past due and the management considers the default risk is high. As at 30 June 2026, all of the bank balances, term deposits and restricted bank deposits of the Group were deposited with highly reputable and sizable banks and financial institutions without significant credit risk in the PRC and Hong Kong. The management does not expect to incur any losses from non-performance by these banks and financial institutions. As at 30 June 2026 and 31 December 2025, the Group held cash and bank balances and restricted bank deposits totalling HK$544.7 million and HK$984.5 million, respectively, with four major banks in the PRC and Hong Kong. Liquidity Risk The liquidity position of the Group is monitored closely by its management. The Group monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance its operations and mitigate the effects of fluctuations in cash flows. CONTINGENT LIABILITIES As at 30 June 2026, the Group did not have any significant contingent liabilities (31 December 2025: Nil). PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES Neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company’s listed securities during the Period. HUMAN RESOURCES The Group employed a total of approximately 8,000 full-time employees as of 30 June 2026. The Group believes human resources are its valuable assets and maintains its solid commitment to attracting, developing and retaining talented employees, in addition to providing dynamic career opportunities and a favorable working environment to its employees. The Group constantly provides training with diverse operational functions and offers competitive remuneration packages and incentives to all employees. The Group regularly reviews its human resources policies for addressing corporate development needs. The total labour costs for the Period was HK$455.4 million, as compared to HK$471.3 million for the same period last year. The Company conditionally adopted a share option scheme on 23 November 2015 which has expired on 23 November 2025. A new share option scheme was conditionally adopted by the Company on 13 June 2025 to provide incentives or rewards to eligible participants, being directors and employees of the Group, for their contribution or potential contribution to the Group by way of grant of share options.
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– 26 – On 28 February 2024, the board of directors of Ten Pao Electronic (Huizhou) Co., Ltd. (“ Ten Pao Electronic (Huizhou) ”), a subsidiary of the Company, resolved to propose the adoption of the Ten Pao Electronic (Huizhou) Share Award Scheme. The adoption of the Ten Pao Electronic (Huizhou) Share Award Scheme was approved at the extraordinary general meeting of the Company held on 8 April 2024. The purpose of the Ten Pao Electronic (Huizhou) Share Award Scheme is to (i) further establish a sound long-term motivation mechanism of Ten Pao Electronic (Huizhou) and its subsidiaries and associated companies (“ Ten Pao Electronic (Huizhou) Group ”); (ii) provide the eligible participants with incentives in order to retain them, fully motivate the employees of the Ten Pao Electronic (Huizhou) Group and effectively align their interests with the interest of the Ten Pao Electronic (Huizhou) Group and its shareholders, and to enable all parties to focus on the long-term development of the Ten Pao Electronic (Huizhou) Group and to contribute to the sustainable operation and development of the Ten Pao Electronic (Huizhou) Group; and (iii) attract suitable personnel for further development of the Ten Pao Electronic (Huizhou) Group. CORPORATE GOVERNANCE PRACTICES The Board and the management of the Company are committed to abiding by the principles of good corporate governance with emphasis on transparency and accountability. The Board has established an audit committee (the “ Audit Committee ”), a nomination committee and a remuneration committee with defined terms of reference in accordance with the requirements set out in the Corporate Governance Code (the “ CG Code ”) contained in Appendix C1 to the Rules Governing the Listing of Securities on the Stock Exchange (the “ Listing Rules ”). The Board has reviewed the Company’s corporate governance practices and is satisfied that the Company has been in compliance with the applicable code provisions set out in the CG Code throughout the Period, with the exception of code provision C.2.1. According to code provision C.2.1, the roles of chairman and chief executive should be separate and should not be performed by the same person. The Company deviates from this code provision because Chairman Hung performs both the roles of the chairman of the Board and the chief executive officer of the Company. Chairman Hung, the founder of the Group with the established market reputation in the switching power supply industry in the PRC, has extensive experience in the Group’s business operation and management in general. The Board believes that vesting the two roles in the same person provides the Company with strong and consistent leadership and facilitates the implementation and execution of the Group’s business strategies, which is in the best interests of the Company. Under the leadership of Chairman Hung, the Board works effectively and performs its responsibilities with all key and appropriate issues discussed in a timely manner. In addition, as all major decisions are made in consultation with members of the Board and relevant Board committees, and there are four independent non-executive Directors on the Board offering independent perspectives, the Board is of the view that there are adequate safeguards in place to ensure sufficient balance of powers within the Board. The Board shall nevertheless review the structure and composition of the Board from time to time in light of prevailing circumstances, to maintain a high standard of corporate governance practices of the Company.
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– 27 – MODEL CODE FOR SECURITIES TRANSACTIONS The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the “ Model Code ”) contained in Appendix C3 to the Listing Rules as the code of conduct governing Directors’ dealings in the Company’s securities. Employees of the Group (the “ Relevant Employees ”) who, because of their office or employment, are likely to possess inside information in relation to the Company or its securities are also subject to compliance with the Model Code. Following specific enquiry made of all Directors, all the Directors have confirmed their compliance with the Model Code throughout the Period and up to the date of this announcement. In addition, no incident of non-compliance of the Model Code by the Relevant Employees was noted by the Company during the Period and up to the date of this announcement. INTERIM DIVIDEND The Board has resolved to distribute an interim dividend of HK4.2 cents per ordinary share for the Period (2025: HK6.2 cents per ordinary share) to the Shareholders whose names appear on the register of members of the Company on Tuesday, 6 October 2026. The interim dividend will be payable in cash, with an option provided to the Shareholders to receive new and fully paid shares in lieu of cash, in whole or in part, under a scrip dividend scheme (the “ Scrip Dividend Scheme ”). The new shares of the Company (the “ New Shares ”) will, on issue, rank pari passu in all respects with the existing shares in issue on the date of the allotment and issue of the New Shares except that they shall not be entitled to the interim dividend for the six months ended 30 June 2026. The circular containing details of the Scrip Dividend Scheme and the relevant election form are expected to be sent to the Shareholders in October 2026. The Scrip Dividend Scheme is conditional upon the Stock Exchange granting the listing of, and permission to deal in, the New Shares to be issued under the Scrip Dividend Scheme. It is expected that the cheques for cash and the share certificates to be issued under the Scrip Dividend Scheme for the interim dividend will be sent by ordinary mail to the Shareholders at their own risk on Monday, 16 November 2026. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD The Directors are not aware of any significant event requiring disclosure that has taken place subsequent to 30 June 2026 and up to the date of this announcement.
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– 28 – CLOSURE OF REGISTER OF MEMBERS The register of members of the Company will be closed from Friday, 2 October 2026 to Tuesday, 6 October 2026, both days inclusive, for the purpose of determining the entitlement to the interim dividend for the Period. In order to be qualified for the said interim dividend, unregistered holders of shares of the Company should ensure all share transfer documents accompanied by the corresponding share certificates are lodged with the Company’s branch share registrar and transfer office in Hong Kong, Tricor Investor Services Limited, at 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong, for registration not later than 4:30 p.m. (Hong Kong time) on Wednesday, 30 September 2026. The ex-dividend date will be Tuesday, 29 September 2026. AUDIT COMMITTEE AND REVIEW OF FINANCIAL STATEMENTS The Audit Committee comprises three independent non-executive Directors, namely Mr. Cheung Chin Hoo (chairman), Mr. Lam Cheung Chuen and Dr. Lui Sun Wing. The Audit Committee has reviewed the Company’s unaudited interim condensed consolidated financial statements for the Period in conjunction with the Company’s management. The Audit Committee has also reviewed the effectiveness of the risk management and internal control systems of the Group and considered them effective. PUBLICATION OF INTERIM RESULTS ANNOUNCEMENT AND INTERIM REPORT This interim results announcement is published on the websites of the Stock Exchange (www.hkexnews.hk) and the Company (www.tenpao.com). The interim report for the Period containing all the information required by the Listing Rules will be disseminated to the Shareholders and published on the respective websites of the Stock Exchange and the Company in due course. By order of the Board Ten Pao Group Holdings Limited Hung Kwong Yee Chairman and Chief Executive Officer Hong Kong, 28 August 2026 As at the date of this announcement, the Board comprises three executive directors, namely Mr. Hung Kwong Yee, Mr. Tse Chung Shing and Ms. Hung Sui Lam; and four independent non-executive directors, namely Mr. Lam Cheung Chuen, Dr. Lui Sun Wing, Mr. Cheung Chin Hoo and Ms. Ferheen Mahomed.