Announcement on Major Litigation and Arbitration Matters

Securities Code: 002542 Securities Abbreviation: *ST Zhongyan Announcement Number: 2026-067

Zhonghua Geotechnical Group Co., Ltd.

Announcement on Major Litigation and Arbitration Matters

The Company and the entire Board of Directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, without any false records, misleading statements, or material omissions.

Special Reminder:

1. Stage of the litigation (arbitration): First instance.

2. Party's status: The Company's wholly-owned subsidiary, Shanghai Yuanfang Foundation Engineering Co., Ltd., is the defendant.

3. Amount involved: RMB 11,169,850.53 (excluding amounts not yet determined).

4. Impact on the Company's profit and loss: As the case has not yet been heard and the judgment is not yet determined, the impact on the Company's current or subsequent profits is uncertain. The Company will actively respond to litigation and arbitration cases, fully protect the legitimate interests of the listed company and all shareholders, and closely monitor subsequent developments to fulfill information disclosure obligations in a timely manner. Investors are kindly requested to pay attention to investment risks.

I. Basic Situation of the Acceptance of the Current Litigation Matter

Zhonghua Geotechnical Group Co., Ltd. (hereinafter referred to as the "Company"), through its wholly-owned subsidiary Shanghai Yuanfang Foundation Engineering Co., Ltd. (hereinafter referred to as "Shanghai Yuanfang"), recently received the "Notice of Appearance" and "Notice to Produce Evidence" and other case materials served by the Shanghai Jing'an District People's Court. This is a dispute concerning a construction equipment rental contract between Wuxi Shanling Engineering Machinery Co., Ltd. and Shanghai Yuanfang.

The case has been formally accepted, with case number (2026) Hu 0106 Min Chu No. 25019. The basic situation of the acceptance of this litigation matter is as follows:

(I) Information on the Parties to the Litigation

1. Plaintiff: Wuxi Shanling Engineering Machinery Co., Ltd.;

Registered Address: No. 50 Qushan Village, Qiaojie Street, Yixing City;

Legal Representative: Chen Weiqiang.

1. Defendant: Shanghai Yuanfang Foundation Engineering Co., Ltd.;

Registered Address: Room 701-34, No. 4811 Cao'an Road, Jiading District, Shanghai;

Legal Representative: Chen Bainlin.

(II) Information on the Litigation Institution

1. Name: Shanghai Jing'an District People's Court;

Location: No. 3009 Gonghexin Road, Jing'an District, Shanghai.

II. Basic Situation of the Case

(I) Facts and Reasons for the Litigation

The plaintiff and the defendant have successively signed multiple "Machinery Rental Contracts" or "Machinery Equipment Rental Contracts" for the rental of mechanical equipment such as SG70, XR550D, MC64, and SX40. The relevant contracts stipulate that the defendant is the lessee/Party A, and the plaintiff is the lessor/Party B. The plaintiff provides mechanical equipment and related services according to the defendant's project construction needs, and the defendant shall pay the rental fees to the plaintiff according to the contract and settlement results.

During the performance of the contract, the plaintiff has provided the involved mechanical equipment as agreed. The relevant project packages include the Equipment Business Unit Project and the Guanghua Intercity Project. The entry, use, and return of equipment, as well as the settlement of fees, are confirmed by the contract, site equipment rental receipt, and settlement documents, respectively.