CHONGQING M&E (02722): Empowerment Center Submits Bankruptcy Liquidation Application

Chongqing M&E (02722) announced that on August 28, 2026, it received a written notice from Chongqing Industrial Empowerment Innovation Center Co., Ltd. (a wholly-owned subsidiary of the company as of the date of this announcement) stating that the Empowerment Center has submitted a bankruptcy liquidation application to the Chongqing Fifth Intermediate People's Court. The reason for this application is that the Empowerment Center has failed to repay its due debts to creditors, and its assets are insufficient to cover its liabilities. As of the date of this announcement, the company has not received any ruling from the court regarding this application, and there remains uncertainty as to whether the court will accept the application. If the Empowerment Center enters bankruptcy proceedings, a court-appointed administrator will take over, and it will no longer be included in the company's consolidated financial statements. As of the date of this announcement, based on the information above and to the best of the company's knowledge, the company believes that its overall operations remain normal in significant respects. The bankruptcy of the Empowerment Center is expected to have a limited impact on the company's current consolidated profits or future profits, with the final actual impact subject to the results of bankruptcy execution and accountant audits. The company will exercise its shareholder rights in accordance with the law, cooperate with the work of the court and the administrator, and maximize the protection of the interests of the company and all its shareholders.