Hengsheng Group Limited announced on the 19th that it will conduct a third-party allotment capital increase worth 5,248,059,000 won to secure operating funds.

■ Overview of Capital Increase... 1,749,353 New Shares at 2,100 Won Per Share Through this capital increase, 1,749,353 common shares will be newly issued. The new shares will be issued at 2,100 won per share, and the total number of issued shares before the capital increase is 10,712,288. The payment date is the 27th, and the new shares are scheduled to be listed on September 23. The scheduled listing date may change depending on Hong Kong registration and related reporting procedures, and the capital increase schedule may also change in the course of consultations with relevant institutions.

■ Allotment Recipient is Largest Shareholder Hui Mei Nga... One-Year Lock-Up The third-party allotment recipient is Hui Mei Nga, the largest shareholder in person. The company stated that the recipient was selected in consideration of factors including the ability to pay the capital, in order to raise funds necessary for business operations. Hui Mei Nga will be allocated 1,749,353 shares through this capital increase, and the new shares will be subject to a lock-up period of one year after issuance. According to the company, he also participated in a third-party allotment capital increase completed on July 27, acquiring 4 million shares reflecting a 5-to-1 stock consolidation ratio.

■ Use of Funds... 3.674 Billion Won for Purchase Costs and 1.574 Billion Won for Marketing Costs The funds raised will be used as operating capital. According to page 4 of the regulatory filing, the company plans to spend a total of 3.674 billion won on purchase costs and a total of 1.574 billion won on marketing costs. The purchase costs are scheduled at 1.102 billion won in 2026, 1.837 billion won in 2027, and 735 million won after 2027, while the marketing costs are 472 million won, 787 million won, and 315 million won, respectively.

■ Overseas Issuance... 3,719,389.79 Dollars to Be Paid In This capital increase is an overseas issuance, with 3,719,389.79 dollars to be paid in. The expected amount converted into Korean won was calculated using the exchange rate of 1,411 won per dollar, the rate posted by the Seoul Foreign Exchange Brokerage on August 19, 2026, and the company explained that a discrepancy may arise between the expected converted amount and the actual issuance amount due to exchange rate fluctuations.

■ Trading Suspended Due to Stock Consolidation... Issue Price Based on Last Market Price The company stated that due to a 5-to-1 stock consolidation, share trading has been suspended from July 22 to the 24th, making it impossible to calculate a normal base share price. The final closing price on July 21, before the trading suspension, was 420 won, and the closing price reflecting the stock consolidation is 2,100 won. The company calculated the new share issue price based on the final market price immediately before the trading suspension.