HUISEN SHARES (02127) receives civil mediation against several subsidiary companies of the group.

HUISEN SHARES (02127) announces that the company has noted that Ganzhou Nankang Urban Construction Development Group Co., Ltd. (Nankang Development Group) (as the plaintiff) has initiated a civil mediation against several defendants for a total amount of RMB 229 million. The defendants include, but are not limited to, former director of the company Mr. Zeng Ming, Ms. Zeng Minglan, and several subsidiary companies of the group, including Ganzhou Huiming Wood Co., Ltd. (Huiming Wood), Huishen Furniture (Longnan) Co., Ltd. (Huishen Furniture), Huishen Mingda (Longnan) Furniture Co., Ltd. (Huishen Mingda), Ganzhou Aigesen Artificial Board Co., Ltd. (Aigesen), Weiye Health Technology (Longnan) Co., Ltd. (Weiye Health), and Huishen Smart Home Technology (Longnan) Co. Ltd. (Huishen Smart Home). Due to Mr. Zeng Ming failing to settle the claim, Huiming Wood, Aigesen, Huishen Furniture, Huishen Mingda, Weiye Health, and Ms. Zeng Minglan must bear the repayment obligation as guarantors. The mediation result is final and cannot be appealed further. On September 18, 2024, the People's Court of Nankang District, Ganzhou City, Jiangxi Province issued a compulsory enforcement order against the aforementioned subsidiary companies and their assets. As of the date of this announcement, the plaintiff has not taken any enforcement action. The company also notes that Longnan Economic and Technological Development Zone Construction Investment Co., Ltd. (Longnan Development Company) (as the plaintiff) has initiated a civil mediation against several defendants for a total amount of RMB 119 million. The defendants include, but are not limited to, Mr. Zeng Ming, Ms. Zeng Minglan, and several subsidiary companies of the group, including Huishen Furniture, Huishen Mingda, and Huishen Smart Home. Due to Mr. Zeng Ming and Huishen Furniture failing to settle the claim, Ms. Zeng Minglan must bear the repayment obligation as a guarantor. The mediation result is final and cannot be appealed further. As of the date of this announcement, the People's Court of Longnan City, Jiangxi Province has not issued a compulsory enforcement order. There is sufficient collateral for enforcement, based on the information available, the company believes that enforcement will not have an impact on the group's financial condition and business operations.