CLOUDBREAK-B(02592): The court ruled to implement judicial preservation on the bank account opened by Bocovision Cloud Guangzhou at Industrial and Commercial Bank of China in China until November 30th.

CLOUDBREAK-B(02592) announced that on January 6, 2026, it received a notice from the Huangpu District People's Court in Guangzhou regarding the judicial preservation of the bank account of Consonant Vision Cloud Biomedical Technology (Guangzhou) Co., Ltd. (an indirect wholly-owned subsidiary company registered in accordance with the laws of the People's Republic of China) established by Cedar Wealth Management SPC, dated December 24, 2025. According to the court ruling, judicial preservation measures were implemented on the bank account of Consonant Vision Cloud Guangzhou at the Industrial and Commercial Bank of China (including a cash balance of approximately RMB 2.55 million as of the date of the court's notice) until November 30, 2026. The company, after consulting its Chinese legal advisors, believes that the legal process stemmed from an arbitration initiated by Cedar Wealth through its application to the Shanwei Arbitration Commission on August 11, 2025, against the company and Consonant Vision Cloud Guangzhou. The arbitration is related to several service agreements and supplementary agreements for providing enterprise, marketing, and other services to the company prior to the listing of the company's securities on the Hong Kong Stock Exchange on July 3, 2025, and the alleged amounts owed by the defendants to Cedar Wealth. In the arbitration claim, Cedar Wealth demands payment from the company, including unpaid service fees and other expenses totaling USD 2.05 million, interest calculated at the best rate published by the National Interbank Funding Center for the outstanding expenses, and legal fees and asset preservation insurance costs totaling approximately RMB 1.04 million. Consonant Vision Cloud Guangzhou is jointly liable for the payment of these claims, and the arbitration fees are to be borne by the defendants. As the company did not receive any invoices, fee notices, or requests for the alleged unpaid expenses prior to the date of the arbitration application, the group has been actively in contact with Cedar Wealth to gather necessary information and details related to the claims. However, as of the date of this announcement, Cedar Wealth has not provided further details to the group. Therefore, the board of directors believes that there is insufficient information available to assess the nature and potential impact of the arbitration proceedings before receiving the court notice on January 6, 2026. The board of directors is seeking legal advice on the legal and arbitration procedures and will continue to evaluate and monitor their potential legal, operational, and financial impact on the group. As of the date of this announcement, the board is aware that the procedures and asset preservation order have not had a significant adverse impact on the group's overall business, operations, and cash flow, and that the business and operations of the group remain normal. The group will continue to negotiate with Cedar Wealth to explore possible settlements that are mutually acceptable and aim to resolve misunderstandings among the parties, including terminating or withdrawing the procedures and lifting the asset preservation order to safeguard the overall interests of the company and its shareholders.