Announcement • May 30
Founder Holdings Limited Announces Board Changes, Effective May 29, 2026 Founder Holdings Limited announced that Mr. Li Shuo Feng had tendered his resignation as an executive Director of the Company on May 29, 2026 due to other business commitments. The Board announced that with effect from May 29, 2026, Mr. Zhang Peng had been appointed as an executive Director of the Company. Mr. Zhang Peng, aged 43, is the general manager of human resources department of New Founder Holdings Development Company Limited. He was a non-independent director of China Hi-Tech Group Co. Ltd. from June 2023 to April 2026, and assumed the position of manager of China Hi-Tech from September 2025 to April 2026. He serves as a director of an associated company of New Founder. He previously had worked in positions at Ping An Insurance (Group) Company of China Ltd. and its subsidiaries. Mr. Zhang obtained a Master of Business Administration degree from China Europe International Business School in 2025. He possesses solid professional expertise and extensive management experience in talent system formation, organizational development, digital transformation, market operations, and team management. Mr. Zhang has entered into a service agreement as an executive Director with the Company for a term of two years from the date of appointment and should continue thereafter unless and until terminated by either the Company or Mr. Zhang in accordance with the service agreement. Mr. Zhang will hold office until the next annual general meeting of the Company and will retire at such annual general meeting but will be eligible for re-election pursuant to the Listing Rules and the bye-laws of the Company. New Risk • May 27
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: HK$773.6m (US$98.7m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.3% net profit margin). Market cap is less than US$100m (HK$773.6m market cap, or US$98.7m). 
