Haitian Group: Subsidiary awarded 1.15 billion yuan in compensation in first instance of lawsuit, final result to be confirmed

The announcement of Hai Tian Corporation stated that its wholly-owned subsidiary Tianfu Haitian sued Sichuan Tianfu New Area Agriculture and Rural Bureau and Sichuan Tianfu New Area Management Committee for their disagreement in negotiating the compensation scheme for the withdrawal of the franchise rights of the sewage treatment plant. In the first-instance judgment on March 31, 2026, it was confirmed that the relevant decision of the Management Committee was illegal, the compensation scheme was revoked, and the Management Committee was required to pay compensation of 115 million yuan. As the appeal period is ongoing, the finality of the judgment is uncertain, and the impact on the company's profits cannot be assessed temporarily. In addition, as of the disclosure date of the announcement, the company and its controlling subsidiaries have other undisclosed litigation involving a total amount of 30.4828 million yuan, accounting for 1.11% of the audited net assets for the year 2024.