CR MEDICAL (01515): Court rules to confirm that the Yanhua IOT Agreement was terminated on July 2, 2025.

CR MEDICAL (01515) announced that in June 2025, the Company filed a new lawsuit with the Beijing Second Intermediate People's Court regarding the Yanhua IOT Agreement dispute, requesting the court to rule on the termination of the Yanhua IOT Agreement and to order Yanhua Phoenix and/or Yanhua Hospital to pay relevant damages for breach of contract and return relevant payments under the Yanhua IOT Agreement. The Company has recently received the first-instance judgment dated August 26, 2026, issued by the Beijing Second Intermediate People's Court (the New Lawsuit First-Instance Judgment), which ruled that (1) it is confirmed that the Yanhua IOT Agreement was terminated on July 2, 2025; (2) Yanhua Phoenix shall return the consideration for the transfer of operating and management rights of RMB 45,599,800 and interest (to be calculated separately); (3) Yanhua Hospital shall return the outstanding interest-free loan of RMB 127,286,800; (4) the Yanhua Parties shall pay RMB 41,301,900 for the loss of hospital management fees and late payment penalties (to be calculated separately); and (5) the Yanhua Parties shall pay RMB 133,558,100 for the loss from the cessation of comprehensive service transactions and interest (to be calculated separately). Neither party filed an appeal against the New Lawsuit First-Instance Judgment within the appeal period, and therefore the New Lawsuit First-Instance Judgment officially took effect on September 11, 2026. The Company will use its best efforts and take all appropriate actions in accordance with the law to obtain the payments under the New Lawsuit First-Instance Judgment and safeguard the interests of the Company and its shareholders. Generally speaking, the time and outcome of enforcing a court judgment will be affected by practical factors.