*ST Chunxing: First-instance judgment in loan contract dispute case, joint liability required

*ST Chunxing announced that the company and its subsidiary Jinzhai Chunxing were sued by Jinzhai Huijin Investment Co., Ltd. over a loan contract dispute. Recently, they received a first-instance judgment from the People's Court of Jinzhai County, Anhui: Jinzhai Chunxing is required to repay the loan principal of RMB 166 million plus interest, and pay legal fees of RMB 46,200. The plaintiff has the right to priority compensation from Jinzhai Chunxing's mortgaged assets, and the company bears joint and several liability for the above debts. As of now, the cumulative amount involved in unresolved litigation and arbitration cases of the company and its subsidiaries has exceeded 100% of the audited net assets for 2025. Some assets and bank accounts have been seized and frozen. If the payment obligations are not fulfilled on schedule, the company will face the risk of judicial enforcement.