Century Dingli: Application for Retrial of Major Litigation by Wholly-Owned Subsidiary Accepted by the Supreme People's Court

Century Dingli announced that its wholly-owned subsidiary, Shanghai Zhixiang, has applied to the Supreme People's Court for a retrial regarding its equity transfer dispute with Ying Yusheng, Hu Meizhen, and Nantong Zhixiang, and the case has passed filing review. Shanghai Zhixiang had previously won both the first and second instances of the case and has received part of the enforcement proceeds. Because there are currently no other immediately available assets for enforcement, the court has terminated the enforcement proceedings. The retrial request seeks to change the judgment so that Ying Yusheng and Nantong Zhixiang repay RMB 127 million, pay liquidated damages of RMB 12.703 million and corresponding losses for occupation of funds, with Hu Meizhen bearing joint and several liability for repayment. As of the disclosure date of the announcement, the total amount of other litigation and arbitration matters of the company and its controlled subsidiaries that have not reached the disclosure threshold is RMB 18.8412 million, accounting for 4.60% of the net assets audited in the most recent period. There is a material risk that the remaining claims involved in the case may not be fully recovered, and the specific impact of this matter on profit shall be subject to audit confirmation.