Hengfu Holdings (00643) received a letter from Kang Xiao Ho Law Firm regarding share charges

According to Zhitong Finance App News, Hang Fu Holdings (00643) issued an announcement. On September 22, 2026, the company received a letter from Kang Xiao Ho Law Firm (representing Mr. Chen Zhicong and Mr. Gan Zhongheng, the joint and individual receivers (receivers)) of all issued share capital of MARS Worldwide Holdings Limited (MARS)) (pledged shares). According to this, the receiver as the custodian was appointed by Juyun International Development Co., Ltd. to handle:

(a) A share charge between Zephyrus Capital Limited as the chargeant and Juyun as the grantee in respect of all of MARS's issued share capital on April 14, 2026; and (b) the contract of appointment dated June 30, 2026.

As stated in the letter, the appointment was due to a breach of contract relating to outstanding loans and interest under the loan agreement dated April 14, 2026. MARS is a company incorporated in the British Virgin Islands and directly holds 411 million shares of the Company (accounting for approximately 45.71% of the Company's issued share capital). The receiver has procured the transfer of the secured shares to the receiver (as the sole registered owner of the secured shares), and the receiver has prompted his nominee to be appointed as a director of MARS. Currently, all MARS directors are nominees for successors. As a result, the receiver has taken control of MARS. The purpose of appointing a receiver is to facilitate the execution of relevant share charges, including the possible sale of secured shares to repay outstanding amounts under the relevant loan agreement. Accordingly, the receiver may contact the Company when necessary to fulfill and/or complete the Memorandum of Understanding and proposed sale matters.

The Company has learned that the matter has entered judicial proceedings and is scheduled to be heard on September 27, 2026.

As of the date of this announcement, the Company has not received further information on the outcome of the judicial proceedings, the terms of the Memorandum of Understanding, the identity of any proposed buyer, the terms of any proposed sale, the costs involved, or whether any proposed sale will take place or be completed.

The Company is unable to independently verify all matters described in this letter at this stage. The Company will continue to monitor developments relating to this matter, including judicial proceedings and any potential changes in ownership or control of MARS and/or related shares. Shareholders and potential investors of the Company should note that there is no guarantee that any proposed sale described in this letter will be carried out or completed.