ST Jin Hong: Unable to repay the principal and interest on time, some assets of the subsidiary are frozen.

ST Jin Hong announced on the evening of July 22 that the company recently received a notification of asset preservation from the Beijing Second Intermediate People's Court, informing them that some assets of the company's wholly-owned subsidiaries Hunan Shenzhou Jiepai Ceramics Co., Ltd., Hengyang Guoneng Real Estate Co., Ltd., and Zhongyou Jin Hong East China Investment Management Co., Ltd. have been judicially frozen. The freezing of the above assets is mainly due to the company's tight liquidity, making it unable to repay the debts of the "15 Jin Hong Debt" and the "16 Zhong Piao" creditors on time, resulting in creditors taking legal measures to preserve assets. The frozen and sealed assets above are not restricted in normal use and can still be used by the company and its subsidiaries to conduct normal business operations. If the court takes further measures in the execution of the case, there may be a risk of judicial disposal, which could have a certain impact on the production and operation of the company and its subsidiaries. The company will actively coordinate with all parties to resolve the issue of asset freezing.