Sichuan Changhong subsidiary wins major lawsuit appeal against Suning

Sichuan Changhong Electric Co., Ltd. announced today that its controlled subsidiary, Sichuan Changhong Jiahua Digital Technology Co., Ltd. (Jiahua Digital), has won its appeal in a lawsuit against Suning.com Group Co., Ltd. Suning Purchasing Center.

The Jiangsu High People's Court dismissed Suning's appeal and upheld the original judgment. This judgment ordered Suning Purchasing Center to pay Jiahua Digital principal goods totaling CNY 720,466,948.25 and capital occupation losses of CNY 124,614,074.59 (calculated up to September 13, 2024), plus ongoing losses. Suning Purchasing Center will also bear the second-instance case acceptance fee of CNY 664,871.

This ruling is a final judgment. As of the announcement date, the lawsuit remains within the court's judgment enforcement period, and the subsequent enforcement outcome is uncertain. Therefore, the impact on the current or future profits of Sichuan Changhong and Jiahua Digital cannot be precisely estimated.

Within the past 12 months, Sichuan Changhong and its unlisted subsidiaries were involved in 142 undisclosed litigation/arbitration cases as defendants/respondents, totaling approximately CNY 58.3494 million. As plaintiffs/applicants, they were involved in 6 cases, totaling approximately CNY 22.2980 million. The cumulative amount involved in these undisclosed cases represents approximately 0.55% of the company's most recent audited net assets.