Shengda Forestry property auction fails, some lawsuits withdrawn

Sichuan Shengda Forestry Industry Co., Ltd. (Shengda Forestry) announced that its office building, located at No. 42, Jinjiangdonghua Street, Chengdu, Sichuan Province, failed to sell in its first online public auction. Held from December 9 to December 10, 2025, the auction concluded with no bidders. The company stated this will not significantly impact its production and operations, though the outcome of a potential second auction remains uncertain. The impact on the company's profit will be determined by audit results.

Shengda Forestry also received a ruling from the Chengdu Intermediate People's Court regarding case (2024) Chuan 01 Minchu No. 250. The court approved requests from plaintiffs Zhu Ying and Qu Chenchun to withdraw their lawsuits during the trial period. Additionally, 67 individuals, including Geng Huiyun, withdrew their lawsuits against Xiamen International Bank Co., Ltd., Xiamen Branch.

Furthermore, a previously disclosed securities false statement liability lawsuit filed by Nuoan Asset Management Co., Ltd. against Shengda Forestry has concluded. The first-instance judgment, disclosed on November 3, 2025, dismissed the plaintiff's claims. Both parties confirmed they will not appeal, and the first-instance judgment has now become effective.