Addsino subsidiary's performance compensation dispute heads back to lower court

Addsino subsidiary, Nanjing Changfeng Aerospace Electronic Technology Co., Ltd. ("Nanjing Changfeng"), announced that the Jiangsu Provincial Taizhou Intermediate People's Court has issued a civil ruling to revoke the initial judgment and send the case back to the Jiangsu Provincial Taixing City People's Court for retrial. This means the litigation, concerning performance compensation from certain individuals, will proceed to another round of hearings at the lower court. The involved amount remains RMB116,941,200.

The litigation began in December 2022 at the Nanjing Jiangbei New Area People's Court and was later transferred to the Jiangsu Provincial Taixing City People's Court. The initial judgment dismissed all of Nanjing Changfeng's claims, leading Nanjing Changfeng to appeal. The current ruling allows Nanjing Changfeng's pre-paid second instance case acceptance fee to be refunded.

Addsino emphasizes that with the case returned for retrial, the ultimate outcome of the litigation remains uncertain, and its impact on the company's current and future profits cannot yet be determined. The company will continue to monitor the case and provide timely disclosures to investors.