ST Baili: First-instance Judgment in Financial Loan Contract Dispute, Plans to Appeal

ST Baili announced that the first-instance judgment has been rendered in the financial loan contract dispute case involving the company and the Yueyang Branch of Bank of Communications. As the defendant, the company is required to repay loan principal, interest, and compound interest totaling RMB 248 million, and to pay RMB 60,000 in attorney fees; if the company fails to perform on schedule, the plaintiff has the right to seek priority repayment from the relevant properties under the company and Wuhan Refining & Chemical within the corresponding maximum limits, and Wang Hairong, Wang Lixia, Wang Liyan, Wuhan Refining & Chemical, Baili Lithium Battery, and others are required to bear joint and several liability for repayment within a maximum limit of RMB 400 million. The total amount involved in the case is RMB 249 million. The company had previously recognized the relevant liabilities, and this judgment does not add new debt. It is expected to have no material impact on profit. The company plans to file an appeal within the statutory time limit.