*ST Xifa: CGN Withdraws Lawsuit Over Bankruptcy Claim Confirmation Dispute

*ST Xifa announced that the Lhasa Intermediate People's Court accepted a creditor's reorganization application against the company on April 24, 2026. CGN Capital Holdings Co., Ltd., due to objections to claims recorded in the claims schedule, filed an ordinary bankruptcy claim confirmation dispute lawsuit involving an amount of RMB 308 million. Recently, the company received a civil ruling from the Lhasa Intermediate People's Court; the plaintiff, CGN Capital Holdings Co., Ltd., applied to withdraw the lawsuit, and the court has ruled to permit the withdrawal. The withdrawal will not affect the company's financial condition. The company has entered reorganization proceedings, and if the reorganization fails and it is declared bankrupt, its shares will face the risk of delisting.