YCIC Eco-Technology's subsidiary Hong Yao Company has been included in the list of dishonest and untrustworthy persons subject to enforcement.

YCIC Eco-Technology (002200.SZ) announced that its subsidiary, Yunnan Hongyao Landscape Greening Engineering Co., Ltd. (referred to as "Hongyao Company"), received a "Dishonesty Decision" from the People's Court of Chuanshan District, Suining City, Sichuan Province on January 22, 2025. Hongyao Company has been listed as a dishonest party subject to enforcement by the People's Court of Chuanshan District, Suining City, Sichuan Province. Due to a dispute related to a "construction engineering construction contract," Hongyao Company was sued by Yunnan Linhua Construction Engineering Co., Ltd. According to the court's ruling, Hongyao Company is required to pay the outstanding amount and interest to Yunnan Linhua Construction Engineering Co., Ltd. After the ruling took effect, as Hongyao Company did not fulfill its obligations, Yunnan Linhua Construction Engineering Co., Ltd. applied for enforcement to the court. As no other enforceable properties were found, the People's Court of Chuanshan District, Suining City, Sichuan Province terminated the enforcement procedure according to the law. During the enforcement process, due to the circumstances outlined in the "Several Provisions of the Supreme People's Court on the Publication of Information on the List of Dishonest Enforcement Parties," the People's Court of Chuanshan District, Suining City, Sichuan Province included Hongyao Company in the list of dishonest enforcement parties for a period of 2 years. The situation of Hongyao Company, a subsidiary controlled by the company, being listed as a dishonest enforcement party will have a certain impact on Hongyao Company in terms of government procurement, bidding, qualification certification, etc. The company has urged Hongyao Company to communicate with all relevant parties and seek to resolve the aforementioned dishonest enforcement case as soon as possible.