Hengli Industrial Development Group Co., Ltd. (hereinafter referred to as "the Company" or "Hengli Industrial") and its wholly-owned subsidiary Yueyang Hengli Auto Parts Co., Ltd. (hereinafter referred to as "the Parts Company") received the Civil Judgment from the People's Court of Yueyang Tower District, Hunan Province (hereinafter referred to as "the Tower District Court") on July 7, 2025. The relevant situation is announced as follows:
1. Basic Situation of the Litigation
Due to a construction contract dispute, Hunan Fangyuan Architectural Engineering Design Co., Ltd. (hereinafter referred to as "Fangyuan Design Company") and Hunan Pioneer Construction Engineering Co., Ltd. (hereinafter referred to as "Pioneer Construction Company") have sued the Company and the Parts Company in the Tower District Court. For details, please refer to the relevant announcements disclosed by the Company in the Securities Times and on the Giant Tide Information Network (www.cninfo.com.cn) (Announcement No.: 2025-06, 2025-26, 2025-34). Recently, the Tower District Court held a public hearing on this case and rendered a judgment.