Announcement on Progress of Major Litigation and Prior Litigation Matters of a Controlled Subsidiary

Announcement on Progress of Major Litigation and Prior Litigation Matters of a Controlled Subsidiary

The company and the board of directors guarantee the truthfulness, accuracy, and completeness of the information disclosed, and that there are no false records, misleading statements, or material omissions.

Special Reminder:

1. Litigation Stage: First-instance judgment.
2. Party Status of the Listed Company: Jiangmen Kenheng Industrial Co., Ltd. (hereinafter referred to as the "Company")'s controlled subsidiary, Shenzhen Haoneng Technology Co., Ltd. (hereinafter referred to as "Shenzhen Haoneng"), is the plaintiff.
3. Amount Involved: In the first-instance judgment, Chongqing Xinyu Financial Leasing Co., Ltd. (hereinafter referred to as "Chongqing Xinyu") was ordered to pay Shenzhen Haoneng equipment and warranty fees totaling RMB 36,545,000.00, plus late payment penalties (with a maximum penalty of RMB 646,100.00).
4. Impact on the Company's Profit and Loss: The Chongqing Free Trade Zone People's Court ruled that Chongqing Xinyu should pay Shenzhen Haoneng equipment and warranty fees and penalties. If dissatisfied with the judgment, an appeal can be filed within fifteen days of the judgment being served. As the appeal period is currently ongoing, the final outcome's impact on the Company's current or future profits remains uncertain. The Company will make corresponding accounting treatments based on the case's progress and enterprise accounting standards.

Shenzhen Haoneng, a controlled subsidiary of the Company, recently received a "Civil Judgment" [(2025) Yu 0192 Min Chu No. 806] from the Chongqing Free Trade Zone People's Court. The progress of the litigation is hereby announced as follows:

I. Basic Situation of This Litigation Matter

In January 2025, the Chongqing Free Trade Zone People's Court accepted a sales contract dispute case between Shenzhen Haoneng and Chongqing Xinyu. For specific details, please refer to the "Announcement on Major Litigation of Wholly-owned Subsidiary" disclosed by the Company on January 13, 2025 (Announcement No.: 2025-001).