Hongli Zhihui: The fully-owned subsidiary's bank account and equity freeze case enters the second instance.

Hongli Zhihui announced that its wholly-owned subsidiary, Hongli Xianshi, had 42.6998 million yuan of shares in Shenzhen Smaide frozen in January 2026 due to a dispute over a sales contract. The court ruled in February to support Bluepex Vision's demand for Hongli Xianshi to return about 29.8 million yuan in goods and losses, while rejecting the company's joint liability claim. Hongli Xianshi has filed an appeal, and the case has been accepted for review, entering the second trial phase. As of the announcement date, there have been no new account freezes or thaws. The relevant accounts are still frozen, and the status of the Shenzhen Smaide shares remains unchanged. This freeze has had an impact on Hongli Xianshi's cash flow, and the impact of the case on the company's profits is uncertain.