CHIHO ENV (00976): Court terminates the substantive consolidation reorganization proceedings of Longxin Restructuring Company

CHIHO ENV (00976) announced that, in respect of the substantive consolidation reorganization of Longxin Group Co., Ltd., Longxin Holdings Co., Ltd. and Yushang Investment Group Co., Ltd., being the Company's indirect controlling shareholders, together with ten other companies related to the controlling shareholders, which has been ongoing under the supervision of the Fifth Intermediate People's Court of Chongqing, on August 20, 2026, the Chongqing Intermediate Court issued a civil ruling ((2022) Yu 05 Po No. 76 zhi 43) to terminate the substantive consolidation reorganization proceedings of the Longxin Restructuring Companies. According to the civil ruling, the administrator reported to the Chongqing Intermediate Court that, on July 31, 2026, all conditions for the completion of the execution of the reorganization plan had been fulfilled, including making distributions to creditors, implementing debt repayment arrangements, establishing and implementing the trust plan, transferring the relevant assets pursuant to the trust plan, and the completion of industrial and commercial change registration by the restructuring entities. On this basis, the administrator requested the Chongqing Intermediate Court to confirm that the reorganization plan had been fully executed and to terminate the bankruptcy reorganization proceedings. In the civil ruling, the Chongqing Intermediate Court approved the administrator's request and ordered the termination of the reorganization proceedings of the Longxin Restructuring Companies. The Chongqing Intermediate Court further ordered that, given that certain claims are currently in a state of escrow or custody, the administrator shall continue to perform its supervisory duties. The civil ruling took effect on August 20, 2026. Taking into account that the Company is not one of the Longxin Restructuring Companies and that the Company is independent from its controlling shareholders in terms of business, personnel, assets and finance, the Board considers that the termination of the reorganization proceedings will not have a material adverse impact on the Company's operations and financial condition.