BROAD HOMES: Has submitted a bankruptcy reorganization application to the court

According to the announcement from BROAD HOMES (02163), in recent years, the company has been deeply trapped in debt and operational crises due to macroeconomic factors, real estate regulations, and the pandemic. Although multiple self-rescue measures have been taken, the results have been unsatisfactory, and various risks have fully emerged and continue to escalate. In accordance with the relevant provisions of the Company Law of the People's Republic of China and the Enterprise Bankruptcy Law of the People's Republic of China, given the company's operational difficulties, inability to repay due debts, and a clear lack of repayment capability, it has met the conditions stipulated in Articles 2 and 7 of the Enterprise Bankruptcy Law of the People's Republic of China and is eligible for reorganization. At the same time, the company has a deep technical reserve, a high industry position, and strong brand influence in the prefabricated construction industry, which provides reorganization value; as a listed company on the Stock Exchange, it has certain platform resource advantages and is expected to introduce quality strategic investors through reorganization to resolve debt risks and further enhance the company's core competitiveness, thereby creating value for shareholders, employees, and society. Based on the above reasons, and after resolutions passed by the board of directors and the shareholders' meeting, the company has submitted a bankruptcy reorganization application to the Changsha Intermediate People's Court on October 30, 2025, based on its actual operational needs.

The bankruptcy reorganization procedure aims to save the debtor's enterprise by adjusting assets and liabilities and rearranging operational management activities, allowing the enterprise to escape financial difficulties and achieve rebirth through judicial processes. If the court rules to allow the company to undergo bankruptcy reorganization, the company will actively plan related matters, introduce reorganization investors, and accelerate discussions with the court, creditors, and shareholders on debt resolution plans, striving to form a draft reorganization plan for review by the creditors' committee and obtain court approval as soon as possible. Through systematic debt resolution solutions, the company aims to eliminate its debt burden, divest non-performing assets, and promote a return to a healthy development track. This application will not significantly impact the company's current financial status and production operations, with the final impact subject to the subsequent progress of this application and the results of the annual audit by the auditors