Changhong Jiahua faces appeal in Suning procurement dispute

Changhong Jiahua Holdings Limited has announced that the Higher People's Court of Jiangsu Province accepted Suning Procurement Center's appeal on July 10, 2025, concerning a sales contract dispute. This appeal challenges the Civil Judgment issued by the Intermediate People's Court of Nanjing, seeking to revoke or reduce the loss on capital occupancy attributed to Suning, as well as the allocation of litigation fees.

Suning is contesting the capital occupancy loss, aiming to reduce the amount from RMB124,614,074.59 to RMB54,202,914.66, using alternative calculation methods based on bank interest rates or the One-Year Loan Prime Rate. Furthermore, Suning seeks to shift the burden of litigation fees for the capital occupancy loss to Changhong Jiahua.

The company acknowledges that the litigation is currently at the second instance, and its final judgment and enforcement outcomes remain uncertain, potentially impacting the Group’s financial performance. Changhong Jiahua commits to actively safeguarding its rights and interests through legal measures, advising shareholders to exercise caution while trading shares given the ongoing legal proceedings. Further announcements will be made to update investors on any material developments in the litigation.