Yinchuan Xinhua Commercial wins appeal in major litigation case

Yinchuan Xinhua Commercial Group (the "Company") announced the final outcome of a significant litigation case, following a civil judgment from the Yinchuan Intermediate People's Court of Ningxia Hui Autonomous Region. The case, an unjust enrichment dispute between the Company and Ningxia Great World Industrial Group Co., Ltd., saw both parties appeal an earlier ruling. The original lawsuit, filed by the Company, involved a claimed amount of CNY 70,497,461.82.

The Yinchuan Intermediate People's Court issued a judgment to "reject the appeal and uphold the original judgment," a ruling considered final. As a result, the Company stated this judgment would not lead to litigation losses in the current period. The second-instance case acceptance fee of CNY 410,139 was allocated, with the Company bearing CNY 33,242 and Ningxia Great World Industrial Group Co., Ltd. bearing CNY 376,897.

The Company plans to actively enforce the effective legal documents to protect its legitimate interests and will disclose further information based on the actual execution of the judgment. As of the announcement date, the Company and its subsidiaries have no other major undisclosed litigation or arbitration matters.