The board of directors of the Kidztech Holdings Limited announced that, on 23 December 2021, the company has entered into a loan agreement with a licensed money lender in Hong Kong under the Money Lenders Ordinance for the principal amount of HKD 30,000,000. The Loan has a term of one year from its drawdown date subject to the terms of the Loan Agreement. To the best of the knowledge, information and belief of the Directors, having made all reasonable enquiries, the Lender is a third party independent of the Company and its connected persons. Pursuant to the Loan Agreement, the company has covenanted that it will procure Mr. Yu Huang, a controlling shareholder of the company, among others, not to sell, transfer or otherwise dispose of his equity interests in the company and its subsidiaries or associated companies or any part thereof or create any encumbrance over his equity interests or any part thereof unless with the prior written consent of the Lender. A breach of such covenant will constitute an event of default, upon the occurrence of which, all outstanding amounts under the Loan Agreement shall become immediately due and payable. As at the date of this announcement, Top Synergy Y&C Limited holds approximately 39.73% of the total issued share capital of the Company. Top Synergy Y&C Limited is owned as to approximately 94.79% by Mr. Yu Huang and as to approximately 5.21% by Ms. Chen Cheng, the spouse of Mr. Yu Huang, respectively. The Company will make appropriate disclosures on the above provisions under the Loan Agreement in the subsequent interim and annual reports of the Company pursuant to Rule 13.21 of the Listing Rules for so long as the circumstances giving rise to the disclosure obligation continue to exist.