The board of Xtep International Holdings Limited announces that on 3 July 2023, the Company as borrower entered into a facility agreement with a consortium of six banks which is arranged by Hang Seng Bank Limited (``HASE''), The Hongkong and Shanghai Banking Corporation Limited, Bank of China (Hong Kong) Limited and The Bank of East Asia, Limited as mandated lead arrangers and bookrunners, pursuant to which a 4-year term loan facility in the principal amount of HKD 1,000,000,000 (the ``Facility'') was made available to the Company on the terms and conditions stated therein. The purposes of the Facility are: (i) to refinance in full an existing term loan facility in the principal amount of HKD 1,800,000,000 (further details of which have been disclosed in the announcement of the Company dated 2 September 2019) which enable the Group to maintain its financial flexibility and its effective management of its financing costs; and (ii) to finance the general corporate requirements of the Company and its subsidiaries (the ``Group''). The Facility is guaranteed by certain subsidiaries of the Company.

It is provided in the Facility Agreement, among other things, that an event of default will occur if the following undertakings are not complied with: (a) Mr. Ding Shui Po will remain as the chairman of the Board of the Company. (b) Mr. Ding Shui Po will maintain control over the management and business of the Group. (c) Mr. Ding Shui Po, Ms. Ding Mei Qing, Mr. Ding Ming Zhong and any of their respective family trust established by him/her whereby he/she and his/her family members are the only beneficiaries of the trust (the ``Ding Family'') collectively will continue to own, directly or indirectly, at least 40% of the beneficial hareholding, carrying at least 40% of the voting rights in the Company, free from any security.

(d) The Ding Family collectively will remain to be the single large shareholder of the Company.