Sifang New Materials: Progress Made in Cumulative Litigation and Arbitration Matters

Sifang New Materials announced that its sales contract dispute lawsuit with Chongqing Construction Engineering has entered the enforcement stage. The company has applied to the Yuzhong District Court for compulsory enforcement in respect of the unpaid principal of RMB 2.2812 million, case acceptance fee of RMB 35,500, and overdue interest of RMB 64,300, among other items, and has received the case filing notice. From October 10, 2024 to April 1, 2025, the company was involved in a cumulative total of 84 lawsuits and arbitration proceedings, involving principal of RMB 222 million, accounting for 10.00% of its audited net assets for the period, of which concluded cases involved RMB 147 million and pending cases involved RMB 74.7116 million. From September 20, 2026 to the date of the announcement, the company has had 19 new lawsuits and arbitration proceedings, involving principal of RMB 50.4214 million. There is uncertainty regarding the subsequent enforcement and outcomes of the relevant cases, and the impact on profit cannot be determined at this time.