• Property leasing business decreased in December 2025 Quarter
• Vacancy rates remain high across warehouses, factories, and exhibition centre
• Negotiation of new tenancies active since independent customs operation in Hainan

CAQ Holdings Ltd released its quarterly activities report for the December 2025 Quarter. The company's property leasing business decreased during the quarter, with leasing revenue totalling RMB1.1 million (AUD 238k), a reduction of approximately 8% from the previous quarter. This was primarily due to non-renewal of certain leases for factories and warehouses. The company's exhibition centre, warehouses, factories, and administrative building continued to have high vacancy rates, ranging from 41% to 95%. Since the formal implementation of the island-wide independent customs operation of the Hainan Island on 18 December 2025, the company noted that the negotiation of new tenancies has become more active. The company expects that the tenancy of the third to fifth floors of the administrative building can be signed in February, and several new tenancies of the exhibition centre are actively being negotiated, with the expectation that they can be signed in the first quarter of 2026. The company believes that the rental income from property leasing will increase as a result of these new tenancies.During the December 2025 Quarter, the company's receipts from customers increased to $0.24 million (RMB1.1 million) from $0.16 million (RMB0.77 million) in the previous quarter. The group had cash at bank of $0.279 million at the end of the quarter, and there were no payments to director-related parties and their associates during the quarter.