Shenzhen Original Advanced Compounds (603991.SH): The company's original actual controller's violation of guarantee issue has been resolved.

Shenzhen Original Advanced Compounds (603991.SH) Announcement: Recently, the company received a court summons from the People's Court of Minhang District, Shanghai. According to the civil complaint, the company's former actual controller and former chairman Hou Hailiang, and the plaintiff Pan Zhengpeng signed a "Repayment and Guarantee Tripartite Agreement" on April 11, 2020, under which the company provided joint and several liability guarantees for the loans under the contract. Hou Hailiang only fulfilled part of the repayment obligation, and the remaining amount was not repaid. The plaintiff sued Hou Hailiang and the company to the People's Court of Minhang District, Shanghai, requesting repayment of the remaining loan principal of 7.9387 million yuan and interest of 1.6 million yuan, and payment of relevant litigation costs. After checking the company's files, there is no original or copy of the "Repayment and Guarantee Tripartite Agreement" mentioned in the case, nor is there any company seal record related to the guarantee of the loan mentioned above. After checking the meeting archives of the company's board of directors, supervisory board, and shareholders' general meeting, no relevant proposal related to the guarantee case mentioned above has been deliberated. The above matters were carried out in violation of regulations during the period when the former actual controller Hou Hailiang was in control, under the governance of the second board of directors. As of now, Hou Hailiang has voluntarily reached a settlement agreement with the plaintiff through friendly negotiations, and has already paid the settlement amount. The debt between the two parties has been settled, and the plaintiff has submitted an application to withdraw the lawsuit to the People's Court of Minhang District, Shanghai. The company's involvement in the irregular guarantee situation with the plaintiff has been resolved. The company does not need to bear any responsibility in this case, and it is expected that there will be no impact on the company's financial condition and operating results.