Tianhai Defense: The involvement of the plaintiff withdrawing the lawsuit will not have any adverse effects.

Tianhai Defense announced that it recently received a "Civil Ruling" delivered by the Shanghai Financial Court, granting the plaintiff Li Lu's request to withdraw the lawsuit. The original lawsuit requested the lifting of restrictions on 68,619,241 shares held by Li Lu and compensation for losses of 114 million yuan due to fund occupation. The court reduced the handling fee by half to 41,000 yuan to be borne by Li Lu. Some of Li Lu's original shares have already been auctioned off. The withdrawal of the lawsuit will not have a negative impact on the company's daily operations and financial performance. The performance compensation case has not been fully executed, and the company will follow regulations to handle the procedures for lifting the stock restrictions.