China Health Technology Group (01069): Shu Yamashimizu's bank account has been frozen and the incident is being investigated and trading resumed on August 20

Zhitong Finance App News, China Health Technology Group (01069) issued an announcement. On July 10, 2026, the company's chairman and executive director, Ms. Bi Xue, reported to the board of directors that the Futian Branch of the Shenzhen Municipal Public Security Bureau had arrived at the company's place of business in Shenzhen, China and seized a number of documents. Afterwards, Ms. Bi Xue reported that (i) the above location was the office of Shanshuixiu Holdings (Shenzhen) Co., Ltd. (Shanshuixiu, a subsidiary of the company, mainly engaged in ginseng trading business), and that Shanshimizu Xiyu's bank account had been frozen by the Futian Public Security Bureau; (ii) Ms. Cao Xiying, a former executive director of the company, had been detained. The above incidents are collectively referred to as “Alleged Incidents”.

The company has a number of operating subsidiaries engaged in the ginseng business in China. The total amount in the frozen bank accounts of Shanshimizu Shu is less than HK$1,000, which is not significant. For the year ended June 30, 2025, Shanshimizu's revenue was approximately RMB 4.853 million, accounting for 5.4% of the Group's total revenue; moreover, from July 1, 2025 to the date of this announcement, Shanshimizu Xiu's business scale was not significant. As such, Shanshimizu Shu is therefore not a major subsidiary of the Group's ginseng business.

The company is currently investigating the alleged incident, taking steps to further verify the truth and details of the alleged incident, and assess any potential impact on the business operations and financial situation of the Group's ginseng business. Other than those disclosed in this announcement, the Board of Directors knows, fully knows and is convinced that the alleged incident did not have a significant adverse effect on the Group's other business divisions; furthermore, the board believes that there is no other insider information that should be brought to the attention of the company's shareholders and the Stock Exchange.

Regarding the share offering and placement, the placement agreement remains in effect and has not been terminated as of the date of this announcement, despite the failure to meet the expected placement schedule. The preconditions to the placement agreement have been concluded or waived (where applicable), and the placement agreement became unconditional on or before the final closing date. The placement agent has successfully located the consignee to subscribe for a total of 147 million shares, that is, the total number of unsubscribed shares, which is equivalent to about 47.58% of the total number of shares after the expansion of 147 million shares on the date of this announcement.

However, due to the alleged incident, the completion of the placement was delayed. The company will continue with the placement. The placement is expected to be completed on or before August 31, 2026. The Company will make further announcements regarding the alleged incident, share offering and placement in due course in accordance with the Stock Exchange's securities listing rules.

Furthermore, the company has applied to the Stock Exchange for the resumption of stock trading at 9:00 a.m. on August 20, 2026.