The board of directors of Polaris Ltd. announced that the Group has on 1 September 2022 incorporated a new subsidiary, Mastro Luxe South Africa (Pty) Ltd. ("MLZA"), in the Republic of South Africa. The Company was unable to announce the incorporation of MLZA sooner as the finalized incorporation documentation in respect of MLZA was only sent by its appointed agent and received by the Company on September 23, 2022. The total issued and paid-up share capital of MLZA is South African Rand 1,000 comprising 1,000 ordinary shares ("Shares"), of which 51% of the Shares are held by Mastro Luxe Pte.

Ltd., a 51% indirectly owned subsidiary of the Company, and the remaining 49% of the Shares are held by Mina Investments Proprietary Limited ("MIPL"). The principal activities of MLZA are sourcing and exporting of premium lifestyle products; and online and offline sale of premium lifestyle products. MLZA was established to service the joint venture relationship with MIPL, a company incorporated in South Africa.

MIPL is represented by Natasha Stamatiadis, who has more than 9 years' experience in managing retail businesses and interests in South Africa. The Group has decided to incorporate MLZA in order to develop its pre-owned luxury goods business and to facilitate sourcing in South Africa, thereby representing the Group's first expansion outside of Asia and the United States of America, with a view towards increasing the Group's business opportunities and thereafter contribute positively to the growth, financial position and long-term prospects of the Group. The incorporation of MLZA was funded through internal resources and is not expected to have any material impact on the net tangible assets and earnings per share of the Company for the financial year ending 31 December 2022.