Stock Code: 002205 Stock Abbreviation: Guotong Shares Announcement No.: 2026-034
Xinjiang Guotong Pipeline Co., Ltd.
Announcement Regarding the Progress of Litigation Matters
Special Reminder:
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Litigation stage: Second-instance judgment;
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Company's status: Appellant (original co-defendant);
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Impact on company profit and loss: This judgment is final. The company will perform financial accounting based on relevant accounting standards and the case outcome, with final results subject to the annual audit by the accounting firm. The company has accrued estimated liabilities for this case in its 2024 and 2025 audit reports. In 2024, the company recognized estimated liabilities of 186,727,865.55 RMB, and in 2025, it recognized additional estimated liabilities of 11,990,502.22 RMB. As of December 31, 2025, the company has cumulatively recognized estimated liabilities of 198,718,367.77 RMB for this case.
Investors are advised to pay attention to investment risks.
Xinjiang Guotong Pipeline Co., Ltd. (hereinafter referred to as the "Company" or "Guotong Shares") recently received the second-instance civil judgment [(2025) Qiong Min Zhong No. 206] served by the Hainan High People's Court. The progress of the litigation is announced as follows:
I. Basic Information of the Litigation
(1) Parties to the Litigation
Appellant (Plaintiff in first instance, Defendant in counterclaim): Agricultural Development Bank of China, Lingao County Branch
Appellant (Defendant in first instance): Xinjiang Guotong Pipeline Co., Ltd.
Appellee (Defendant in first instance, Plaintiff in counterclaim): Hainan Guoyuan Water Co., Ltd.
Appellee (Defendant in first instance): Guangdong Jinsheng Water Conservancy Engineering Co., Ltd.
Appellee (Defendant in first instance): Fengyang Niuling Mining Co., Ltd.
Third Party in first instance: Lingao County Project Management Center
(2) Basic Case Information
This case originated from the Company's cooperation with Anhui Songbolin Industrial Investment Co., Ltd. to participate in the PPP project for the Lingao Water Supply Project in Hainan Province, for which the SPV project company, Hainan Guoyuan Water Co., Ltd. (hereinafter "Guoyuan Company"), was registered locally. On April 23, 2020, Guoyuan Company signed a "Fixed Asset Loan Contract" with the plaintiff. To ensure the realization of creditor's rights under the "Loan Contract," the plaintiff signed a "Rights Pledge Contract" with Guoyuan Company, using accounts receivable under the "PPP Agreement" as collateral. Additionally, to secure the debt, the plaintiff signed a "Rights Pledge Contract" with Guangdong Jinsheng Water Conservancy Engineering Co., Ltd. (hereinafter "Guangdong Jinsheng") on May 15, 2020, under which Guangdong Jinsheng pledged a principal of 103.5 million RMB plus interest from its "Unit Time Deposit Certificate" held at the plaintiff's bank. To further secure the debt, the plaintiff signed a "Guarantee Contract" with Fengyang Niuling Mining Co., Ltd. (hereinafter "Niuling Mining") on February 22, 2022, under which Niuling Mining assumed joint and several liability for all debts under the "Loan Contract."