HOME CONTROL: The Company expects to make an accounting provision of approximately HK$25.24 million for the investment products subscribed in 2024

HOME CONTROL(01747) announced that it expects to make an accounting provision of approximately HK$25.24 million in respect of the investment products subscribed by the Company ("Investment Products") for the year ended 31 December 2024 ("Reporting Period"). The Company first subscribed Investment Products for HK$38 million on 13 November 2019. The Company partially redeemed Investment Products in September and October 2022, and the unredemption principal amount of Investment Products subscribed by the Company is HK$25.24 million ("Unredemption Principal"). The Investment Products recently rolled over automatically in May 2024 and remain valid as of the date of this announcement.

The accounting provision is in respect of the carrying value of the Company's investment in Investment Products, which is non-cash in nature and therefore will not have any impact on the Group's current cash flow and day-to-day operations.

The Directors believe that it is appropriate to make the accounting provision to reflect the full unredemption principal amount as the Company currently does not have sufficient information to assess the carrying value of Investment Products. Moreover, the issuer of Investment Products has not yet agreed to redeem the balance of Investment Products, and when and whether the full unredemption principal amount can be redeemed remains unknown. The Company intends to continue to negotiate with the issuer of Investment Products regarding the redemption of the unredemption principal amount in accordance with its legal and contractual rights.