EV DYNAMICS (00476) and its subsidiary China Shipbuilding Industry Group Power received a statutory demand letter.

EV DYNAMICS (00476) announced that the Chongqing Arbitration Commission issued a ruling on the sale agreement regarding the sale of all equity of Chongqing Zhongtong New Energy Automobile Technology Co., Ltd. The company and its wholly-owned subsidiary China Shipbuilding Industry Group Power New Energy Technology Co., Ltd. each received a legal demand letter dated December 24, 2025 from legal advisers representing creditors on December 24, 2025 (referred to as the "Legal Demand Letter"). The demand letter requires the company (as guarantor) and China Shipbuilding Industry Group Power (as the main debtor) to repay a total of RMB 38.9672 million within three weeks after the delivery of the demand letter, which includes the price, penalties and compensation paid by the buyer under the sale agreement dated June 2, 2023. If the payment is not made, the creditors may apply for liquidation against the company and China Shipbuilding Industry Group Power respectively.