Announcement on the Progress of Litigation Involving the Company (Construction Project Contract Dispute Compulsory Enforcement Case)

Guangdi Technology Co., Ltd.

Announcement on the Progress of Litigation Involving the Company (Construction Project Contract Dispute Compulsory Enforcement Case)

The Company and the entire Board of Directors guarantee that the information disclosed is true, accurate, and complete, and contains no false records, misleading statements, or significant omissions.

Key Information Prompt:

1. Litigation Stage: Second instance, civil ruling received.

2. Party's Status: First instance defendant, second instance appellant.

3. Amount Involved: RMB 109,453,514.97 plus execution fees and related costs (as determined by the previous execution ruling).

4. Impact on the Company's Profit and Loss: The final judgment and execution status of this litigation are uncertain. Based on the principle of prudence, the company has made a provision for the amount involved in this litigation. Investors are advised to pay attention to investment risks.

Given the progress of the case, the company will make corresponding accounting adjustments to the provision for estimated liabilities. The impact on the company will be subject to final financial accounting. The company will fulfill its information disclosure obligations in a timely manner based on the subsequent progress of this litigation. Investors are advised to pay attention to investment risks.

1. Alxa League Dream Auto Culture Tourism Development Co., Ltd. was completely divested from the company in May 2023 and is no longer a subsidiary within the company's consolidated financial statements.

Recently, Guangdi Technology Co., Ltd. (hereinafter referred to as "the Company" or "Guangdi Technology") received a "Civil Ruling" from the High People's Court of the Inner Mongolia Autonomous Region. The relevant situation is hereby announced as follows:

I. Basic Situation and Progress of the Current Litigation

(I) Basic Situation

Appellant (First Instance Defendant): Guangdi Technology Co., Ltd.

Registered Address: No. 18, Wuchu Avenue, Economic Development Zone, Ezhou City, Hubei Province

Appellee (First Instance Plaintiff): Ningxia Construction Engineering Group Co., Ltd. Second Branch

Registered Address: First Floor, Labor Management Company Office Building, Ningxia Construction Engineering Group, Huaiyuan East Road, Xixia District, Yinchuan City, Ningxia Hui Autonomous Region

Third Party in the Original Trial: Alxa League Dream Auto Culture Tourism Development Co., Ltd.

Registered Address: Room 101, Cultural Architecture, Building 20, Tianyi International Mansion, Bayan Hot Town, Alxa Left Banner, Alxa League, Inner Mongolia Autonomous Region

According to the "Civil Complaint" filed by the Plaintiff Ningxia Construction Engineering Group Co., Ltd. Second Branch:

Litigation Request:

1. Legally order the addition of the defendant as a party subject to enforcement in the execution case (2021) Nei 29 Zhi 26, and to bear joint and several liability for payment within the scope of the engineering fees that Alxa League Dream Auto Culture Tourism Development Co., Ltd. failed to perform as determined by the civil mediation document (2020) Nei 29 Min Chu 64.

2. Order the defendant to bear the litigation costs of this case.

Main Facts and Reasons:

The Plaintiff Ningxia Construction Engineering Group Co., Ltd. Second Branch (hereinafter referred to as "Ningxia Construction") and Alxa League Dream Auto Culture Tourism Development Co., Ltd. (hereinafter referred to as "Dream Auto") had a dispute over a construction project contract. Due to Dream Auto's failure to fulfill its payment obligations as determined by the effective civil mediation document and the lack of other executable assets, the court ruled to terminate the execution on November 29, 2021.