Latest updates on overdue loans and new litigation related to JIU RONG HOLD (02358)

JIU RONG HOLD (02358) announced that the Board of Directors of the Company hereby notifies the shareholders and potential investors of the Company that on April 20, 2026, the Group received a subpoena and a notice of response from the People's Court of Shangcheng District, Hangzhou City (the Court). This legal proceeding was initiated by BANKCOMM Limited Hangzhou Gongshu Branch (Plaintiff) against Lv Yun (Defendant) in relation to a financial loan contract dispute, with case number (2026) Zhe 0102 Min Chu 6794. According to the civil complaint, the Plaintiff has made the following litigation requests: 1. An order for the Defendant to repay the loan principal of RMB 49 million and pay interest of RMB 216,500 calculated up to December 28, 2025 (including interest of RMB 216,300 and compound interest of RMB 200). 2. The Plaintiff requests to declare that the RMB 45.5 million loan is due in advance (as of the date of delivery of the duplicate). The Plaintiff requests that all subsequent overdue principal, overdue penalty interest, and compound interest be calculated at 50% above the Loan Prime Rate (LPR) for loans with a term of five years or more, until the actual repayment date. 3. An order granting the Plaintiff the right to priority repayment of the proceeds from the sale or auction of 31 units of mortgaged real estate located in Building 6 of Luhe Jinzuo, West Lake District, Hangzhou (corresponding to 31 "Real Estate Registration Certificates") owned by the Defendant. 4. An order for the Defendant to bear the litigation costs and other related expenses. The Court has scheduled a hearing for this case on May 13, 2026 at 2:30 p.m. in the first-instance courtroom of the People's Court at the Fund Town. The Board of Directors, after a preliminary assessment, believes that due to the overdue debt, the Company and its subsidiaries may be liable for corresponding default fines, late fees, and penalty interest. Depending on the outcome of the litigation, this may lead to an increase in the Group's financial expenses, potentially affecting the Group's financing capability and exacerbating cash flow pressure. This exacerbates the existing liquidity constraints of the Group, as previous property preservation measures related to other litigation have frozen approximately RMB 12.7214 million of the Group's bank accounts, restricting the allocation of daily operating funds. Furthermore, if this new litigation and related overdue loans are not resolved in the short term, there may be a risk of triggering interbank cross-default, adversely affecting the financial condition and daily production and operation of the Group. As of the date of this announcement, the Company is not aware of any cross-defaults being triggered. As a potential mitigating factor against direct cash outflows, the Plaintiff is also seeking a Court order to grant them priority repayment rights for the proceeds from the sale or auction of the 31 units of mortgaged real estate owned by the Defendant. Despite the aforementioned litigation and frozen bank accounts, the overall business sectors of the Group are still operating normally. The Company is currently seeking the advice of Chinese legal counsel regarding the litigation and is assessing its legal and financial impact. The management of the Group will actively communicate with the Plaintiff to explore the possibility of reaching a settlement and mitigating any adverse impact on the Group's operations. The Company will closely monitor the progress of the litigation and fulfill its disclosure obligations in a timely manner in accordance with relevant laws and regulations.