Xinhe Corporation: Factory Rental Dispute Mediation Resolved, Expected to Reduce 2025 Net Profit by 350,000 Yuan.

Xinhe Corporation announced that the company has reached a settlement in the housing lease contract dispute with Taiwan Integrated Group Limited. The court has issued a "Civil Mediation Statement". As of the filing of the lawsuit, Taiwan Integrated has already paid a total of 8.9841 million yuan in rent, and the company has seized their deposit of 0.6826 million yuan. The overdue rent and taxes amount to 10.7812 million yuan. The company has made a full provision for bad debts for the related accounts receivable and will terminate the rental of the plant, resulting in an estimated reduction of approximately 350,400 yuan in net profit for the year 2025. Taiwan Integrated is required to pay 1 million yuan by April 30, 2026, and another 1 million yuan by June 20, 2026. If they fail to do so, the company has the right to apply for enforcement.