CLARITY MEDICAL (01406) Court has rejected the related litigation and continued to suspend trading.

CLARITY MEDICAL (01406) issued an announcement that, after the Board of Directors adopted the findings listed in the FTI Consulting investigation report, FTI Consulting received an email from Dr. Xie late in the night of March 30, 2026. In the email, Dr. Xie provided FTI Consulting with the oaths sworn by himself and Mr. Jiang in relation to the legal proceedings initiated under the case number HCMP 1627/2025 (the 1627 Litigation). The original summons of this litigation, along with all the relief sought therein, was dismissed by the court on April 2, 2026. Dr. Xie requested FTI Consulting to review these oaths along with the accompanying documents. This was the first substantive communication between Dr. Xie and FTI Consulting. Since December 19, 2025, FTI Consulting had invited Dr. Xie to attend interviews multiple times; however, he did not participate in any interviews during that time period, nor did he provide any substantive information. The Board of Directors sought legal advice on this subsequent event. The company's legal advisor will compare the information related to corporate governance allegations in these oaths with the information cited in the FTI investigation report and conclude that the oaths do not contain any substantive new information. Therefore, the Board decided to issue this announcement and disclose the aforementioned subsequent events. Given that Dr. Xie did not provide any substantive new information and failed to communicate meaningfully with FTI Consulting in the past three months, the Board believes that issuing this announcement (and disclosing subsequent events) without further delay is in the best interests of the company and all shareholders, as any further delay may have adverse effects on the overall plan to resume trading in the company's shares. Based on the aforementioned FTI Consulting findings and one of the conditions for the resumption of trading in the company's shares as outlined in the reinstatement guidance, the Board has appointed one of the Big Four accounting firms as an internal monitoring consultant to conduct an independent internal monitoring review of the company. They will assist the company in implementing and improving its internal monitoring systems and procedures to ensure that the company has sufficient internal monitoring and procedures to fulfill its obligations under applicable laws and regulations and listing rules, and to prevent the recurrence of events similar to the issues raised in the FTI investigation. Trading in the company's shares was suspended on April 15, 2025 (Tuesday) at 9:00 am and will continue to be suspended until further notice.