Announcement • Jun 25
Hong Kong Gold Industry Group Limited Announces Board and Committees Changes, Effective on 23 June 2026 Hong Kong Gold Industry Group Limited announced that Mr. Tong Jiwen ("Mr. Tong") has been elected as an executive Director and each of Mr. Yan Jonathan Jun ("Mr. Yan"), Mr. Zhou Ming ("Mr. Zhou"), Mr. Leung Wai Fung Joseph ("Mr. Leung") and Mr. Jiang Lanxin ("Mr. Jiang") has been elected as an independent non-executive Director by the Shareholders at the AGM, with effect from the conclusion of the AGM on 23 June 2026. The Board announces that with effect from 23 June 2026, Mr. Liu Haitian ("Mr. Liu"), an independent non-executive Director, has been re-designated as a non-executive Director, and has ceased to be the chairman of the remuneration committee of the Company and a member of the nomination committee of the Company in order for him to devote more time to, and in view of, his increased duties and responsibilities of identifying and evaluating business opportunities for the Group. The Company has entered into a service contract with Mr. Liu for his role as a non-executive director pursuant to which he is appointed for an initial term of two years from the 23 June 2026. As set out in the Circular, each of Mr. Wong Chi Wah and Mr. Liu Huangsong, who retired by rotation at the AGM pursuant to Article 112 of the Articles, had informed the Board that he would not to offer himself for re-election at the AGM in order to devote more time to their respective personal engagements. Each of Mr. Wong and Mr. Liu has confirmed that he has no disagreement with the Board and there is no matter with respect to his retirement that needs to be brought to the attention of the Shareholders. The Board announces the following changes in composition of the Board Committees of the Company effective from the conclusion of the AGM on 23 June 2026 as a result of the retirement, redesignation and appointment of Directors as disclosed above: Audit committee of the Company ("Audit Committee"). Mr. Wong Chi Wah ceased to be the chairman of the Audit Committee. Mr. Leung was appointed as the chairman of the Audit Committee. Remuneration committee of the Company ("Remuneration Committee"). Mr. Liu ceased to be the chairman of the Remuneration Committee. Mr. Jiang was appointed as chairman of the Remuneration Committee. Mr. Wong Chi Wah ceased to be a member of the Remuneration Committee. Mr. Leung was appointed as member of the Remuneration Committee. Nomination committee of the Company ("Nomination Committee"). Mr. Liu Huangsong and Mr. Liu ceased to be members of the Nomination Committee. Mr. Jiang and Mr. Yan were appointed as members of the Nomination Committee. Strategy committee of the Company ("Strategy Committee") Mr. Wang Dong ceased to be a member of the Strategy Committee. Mr. Zhou was appointed as member of the Strategy Committee. New Risk • Apr 18
New major risk - Revenue and earnings growth Earnings have declined by 6.4% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (15% average weekly change). Earnings have declined by 6.4% per year over the past 5 years. Shareholders have been substantially diluted in the past year (50% increase in shares outstanding). Valuation Update With 7 Day Price Move • Apr 17
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to HK$5.90, the stock trades at a trailing P/E ratio of 36.3x. Average trailing P/E is 20x in the Metals and Mining industry in Hong Kong. Total returns to shareholders of 557% over the past three years. 
