SHIRBLE STORE (00312) subsidiary will be required to pay the outstanding principal of 254 million yuan and accrued interest to the bank.

SHIRBLE STORE (00312) announces that on December 16, 2024, the court confirmed in its ruling that the first-instance judgment previously issued by the court is final and effective, as the court concluded that the appeal filed by the guarantor (an independent third party) of the borrower (Zhuhai Xiangyao Real Estate Development Co., Ltd.) has been withdrawn. The company's legal advisers in China also confirmed that the ruling and the first-instance judgment are final and effective. Therefore, the borrower will be required to pay to the bank (the plaintiff): (a) approximately 254 million yuan of outstanding loan principal; (b) approximately 1.5 million yuan of overdue interest on the loan; (c) interest and compound interest on the outstanding loan calculated from November 2, 2023 to the payment date, subject to a maximum annual interest rate of 24% as prescribed by the court. The borrower is a limited company established in China, and its obligations under the loan are secured by a property it owns. If the bank does not receive repayment from the borrower, the bank may auction and dispose of the property to obtain the settlement amount. The bank may also require the guarantor of the borrower to jointly and severally bear the payment under the judgment (up to a maximum debt amount of 360 million yuan). The directors believe that enforcing the judgment will not have a significant impact on the group's department store business.