Baiwei Storage is involved in a patent lawsuit, but is expected to have a small impact after withdrawing the lawsuit and being counter-sued.

Shenzhen Baive Storage Technology Co., Ltd. released an announcement. Previously, the plaintiff Yuan Yuzhi Technology (Shenzhen) Co., Ltd. filed two patent infringement lawsuits against Baive Storage, claiming that the company did not have the qualifications to be sued and defended that there was no infringement. Recently, the plaintiff withdrew the lawsuit. However, EMTELL Storage Technology (Shenzhen) Co., Ltd. filed a lawsuit again on the same matter, and the court has accepted the case but has not yet held a trial. The total amount involved in these two cases is 1.21685 million yuan. Because the company complies with the FRAND principles, has no obvious fault, and the patents involved will expire soon, it is expected that the lawsuit will have a small impact on the company's supply capacity and profits. The company has filed a request for invalidation of the patents and will actively defend itself and disclose progress in a timely manner, reminding investors to pay attention to the risks.