Shenzhen Derun Electronics Co., Ltd. (hereinafter referred to as "Derun Electronics" or "the Company") and its subsidiaries Hefei Derun Electronics Co., Ltd. (hereinafter referred to as "Hefei Derun") and Yibin Meite Technology Co., Ltd. (hereinafter referred to as "Yibin Meite") jointly provided joint guarantee liability for a loan from Chongqing Meida Electric Co., Ltd. (hereinafter referred to as "Chongqing Meida") at the Agricultural Bank of China, Chongqing Bishan Branch (hereinafter referred to as "Agricultural Bank" or "the Plaintiff"). Due to Chongqing Meida's failure to timely and fully fulfill its repayment obligations, the Agricultural Bank has filed a lawsuit against both the borrower and the guarantors in the People's Court of Bishan District, Chongqing (hereinafter referred to as "Bishan Court"). For specific details, please refer to the announcements disclosed by the Company on January 6, January 15, January 27, March 5, March 18, and April 24, 2026, in the Securities Times, Shanghai Securities Journal, and the CNINFO website (http://www.cninfo.com.cn) regarding the progress of the litigation.
Progress of the Litigation
Currently, the property located at 366 Chaofeng Road, Guangming District, Shenzhen, under the Company's name is still sealed. According to the civil judgment issued by Bishan Court in April 2026 [Case No. (2025) Yu 0120 Minchu 16416], the Plaintiff has the right to prioritize compensation from the proceeds of the property provided by Derun Electronics, either through valuation or auction, within the scope of the unpaid debt (limited to 121.5 million yuan). The defendants Yibin Meite, Derun Electronics, and Hefei Derun bear joint repayment responsibility for the debt incurred by Chongqing Meida in this case (limited to 121.5 million yuan).