China CBM litigation provision set at RMB 18.8 million as case continues

• China CBM Group litigation tied to a loan guarantee alleged to have been executed in 2015 using subsidiary seal without authorization; management learned of case in 2016 following court filings.
• Enforcement order transferred ownership of industrial land and buildings in Xian County, Hebei, to enforcement applicant to settle RMB 18.8 million claim; assets were valued at RMB 25 million.
• Transfer registration completed April 16, 2026; enforcement applicant paid RMB 6.2 million price difference into court-designated account for benefit of subsidiary.
• Group booked RMB 18.8 million provision in FY2025 accounts; Supreme People’s Procuratorate is reviewing civil judgment, with protest proceedings still ongoing.
• Chairman Wang Zhongsheng committed to indemnify group on an equal basis for losses tied to case, subject to final outcome of prosecutorial review.

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