Announcement: Due to External Factors, We Are Withdrawing from the Hong Kong Market and Relocating Our Headquarters to Singapore

Dear Customers, Partners, and Members of the Community,

Recently, financial institutions used by the Company in Hong Kong to process receipts and payments suspended the relevant account services. As a result, the Company is no longer able to process customer payments, business expenses, and day-to-day operating costs through its original channels.

Following the incident, the Company submitted complaints to the relevant authorities in Hong Kong and has continued to follow up on the matter. However, as of today, the issues have not been substantively resolved.

Based on the Company’s experience throughout the handling of this matter, we believe that Hong Kong’s existing financial services and complaint-handling mechanisms still lack sufficient transparency, clear guidance, and effective support for the business models of artificial intelligence, digital services, cross-border operations, and other emerging start-ups.

We respect the right of financial institutions to conduct compliance reviews and risk management in accordance with the law. At the same time, emerging start-ups also require a clear, stable, and predictable financial-services environment. The prolonged inability to receive and make payments normally has directly affected the Company’s operations, technology investment, and future development plans.

Following a comprehensive assessment, we have decided to withdraw from the Hong Kong market because the current operational obstacles and institutional restrictions in Hong Kong have caused substantial difficulties for the Company.

Under these circumstances, Hong Kong is no longer a location where we are able to advance the development of our products, research and development, and online services.

Accordingly, the Company has decided to make the following adjustments:

1. Suspension of Business Development in Hong Kong

The Company will suspend the development of new business through Hong Kong and will gradually cease using Hong Kong as its primary location for receiving and making payments, executing contracts, and conducting business operations.

The Company’s existing Hong Kong business will enter a transition and migration phase.

2. Cessation of Further AI and Large Language Model Investment in Hong Kong

The Company will cease further investment in artificial intelligence, large language model research and development, AI platform operations, technology infrastructure, and related projects in Hong Kong.

Existing projects will be suspended, adjusted, or relocated as appropriate.

3. Relocation of the AI Business Focus to Singapore

In the future, the Company will gradually relocate its artificial intelligence business, technology research and development, international customer service, commercial operations, and principal settlement arrangements to Singapore.

Singapore will become the principal headquarters and operating location for the Company’s future AI business development.

Following an assessment, we believe that Singapore currently offers a more stable, clear, and supportive business environment for artificial intelligence start-ups, international technology companies, and emerging business models.

4. Possible Changes to Customer Regions and Contractual Arrangements

As a result of this business relocation, some customers may need to:

Affected customers will be notified individually through official channels and provided with reasonable transition arrangements. Until a customer receives formal notice, all existing contracts and service arrangements will remain governed by their current documentation.

These adjustments do not mean that the Company is ceasing the development of its artificial intelligence business, nor do they mean that we are abandoning our existing customers and partners.

We are simply unable to continue treating Hong Kong as the principal location for the Company’s future business development while basic payment capabilities and operating conditions remain unstable and insufficiently transparent over an extended period.

We continue to hope that Hong Kong will improve its environment for technology entrepreneurship, enhance the transparency of financial services and complaint-handling mechanisms, and provide a fairer, more stable, and more predictable operating environment for artificial intelligence entrepreneurs and emerging technology companies.

If the relevant environment materially improves in the future, the Company will reassess the Hong Kong market and consider returning to Hong Kong.

Looking back, the Company has its roots in Hong Kong. Guided by the aspiration to contribute to Hong Kong’s technological development, we have served users in Hong Kong and around the world for more than three years. However, this incident has had a profound impact on us. As entrepreneurs, we are no longer able to devote further energy to this matter. This decision has been both difficult and unavoidable, and we sincerely hope for the understanding of our customers and shareholders. Hong Kong is our home and an international financial centre of which we are all proud. We look forward to improvements in its entrepreneurial environment in the future. For now, we bid Hong Kong farewell.

We thank all our customers, employees, and partners for their continued understanding and support.

Hong Kong Stellar Digital Technology Limited

Victor Lee (CEO)

Publication Date: 29 July 2026