China Qidian subsidiary wins appeal, eliminating litigation risk

China Qidian Guofeng Holdings Limited announced that its subsidiary, Nanjing Haihuitong, received a favorable Appeal Ruling from the Jiangsu Yangzhou Intermediate People's Court on September 17, 2025. This ruling revoked the First Instance Judgment from April 18, 2025, concerning the Haihuitong Litigation, and entirely dismissed Nanjing Haihuitong's claims against Yangzhou Huiyin Commercial Chain, Laitai Trading, and Anhui Four Seas. As the Appeal Ruling is final, no further right of appeal exists for Nanjing Haihuitong.

Following this development, the asset preservation order, which had prohibited the disposal, transfer, or encumbrance of a 65% equity interest in Anhui Four Seas, is expected to be revoked. The board believes this outcome eliminates a previous litigation risk, assuring shareholders and potential investors that there will be no material adverse effect on the group's operations, financial position, or cash flows.