China Ecotourism Group Limited announced that its capital reorganisation and connected creditors’ scheme (the “Creditors Scheme”) became effective on 29 June 2026. Immediately afterwards, the company allotted and issued 326.67 million new shares (“Scheme Shares”)—representing approximately 95.49% of the enlarged share capital—to China Ecotourism Scheme Company Limited, a special-purpose vehicle controlled by the scheme administrators Osman Mohammed Arab and Lai Wing Lun of Acclime Corporate Advisory (Hong Kong) Limited. The shares are held on trust for subsequent distribution to creditors subject to adjudication and final determination under the scheme’s terms.

Following the issuance, China Ecotourism’s total issued share capital expanded from 15.44 million to 342.11 million shares. As a result, legacy shareholder stakes were heavily diluted:

• Lau Ting’s holding fell from 33.86% (5.23 million shares) to 1.53%. • Public shareholders’ aggregate interest dropped from 50.09% (7.74 million shares) to 2.25%. • The newly created Scheme Company now holds 95.49% of the enlarged capital (326.67 million shares) pending distribution to creditors.

Two creditors—Million Sensible and Chen Aizheng—have provided irrevocable undertakings that, should the public float fall below regulatory requirements after the share transfer, they will instead elect the cash option for sufficient Scheme Shares to ensure their combined post-distribution stake remains below 10%.

The board will release further updates once the scheme administrators complete adjudication and confirm each creditor’s final share entitlement.