The Board of Directors of IFS Capital Limited announced that it had entered into a nonbinding memorandum of understanding ("MOU") with Tat Hong Equipment Service Co., Ltd. ("THES"), for a potential collaboration with THES to engage in the business of providing tower crane financing in China. Under the proposed terms of the MOU, both the Company and THES shall procure the formation of a new limited company under the laws of the People's Republic of China ("Newco"), with the Company and THES owning 60.0% and 40.0% of the Newco, respectively. The MOU is subject to further negotiation and definitive agreements to be entered into by the parties.

The Company wishes to update shareholders that due to significant changes in the macroeconomic environment, the Company and THES have mutually agreed not to proceed with the collaboration at this point in time and to terminate the MOU with immediate effect. The Company continues to be optimistic about the longterm opportunities in China and remains interested to explore potential future collaborations with THES.