KAFELAKU COFFEE (01869.HK): clarifies media reports on subsidiary's ten-year franchise deal, says unauthorized and reported to police

NewTimeSpace News: According to the HKEX on October 29, Kafelaku Coffee Holding Limited ("Kafelaku Coffee", 01869.HK) issued a clarification announcement in response to recent media reports and online articles. The company noted reports and articles in mid-July claiming that its wholly-owned subsidiary Jiangsu Maoyou Holdings Limited had entered into a ten-year franchise agreement with Guangzhou Kafelaku Coffee Chain Co., Ltd., involving an alleged brand licensing fee of RMB200 million and the opening of 1,000 franchise stores nationwide.
According to the announcement, the reports and articles may have misled shareholders, investors and the public, and adversely affected the company's reputation. Upon verification, the company and the subsidiary have not authorized, approved or arranged any commercial negotiation, investment project, franchise expansion plan or contract approval procedure in respect of the alleged agreement; the electronic signature/seal on the alleged agreement was not used in accordance with the Group's internal control procedures and authorization requirements, and was not duly authorized by the company or the subsidiary.
The company said that, given the suspected unauthorized use of the subsidiary's electronic signature/seal and the dissemination of related information, the subsidiary reported the matter to the Haizhu Branch of Guangzhou Municipal Public Security Bureau on July 30, 2026. The company will fully cooperate with the authorities and reserves all rights to take legal action against any person or entity responsible for the unauthorized acts and/or the dissemination of false or misleading information.