Xiangcai co.,ltd announced that it is providing an explanation and clarification regarding the reports online about the litigation of its subsidiary Xiangcai Securities. According to the relevant criminal judgment, Xiangcai Securities and its staff were not found to be involved in the contract fraud of Luo Jing and others, nor was there any collusion or conspiracy fraud between Xiangcai Securities, its staff, Guangdong Zhongcheng, and Luo Jing. Furthermore, Xiangcai Securities has received the "Civil Judgment" delivered by the Intermediate People's Court of Kunming City, Yunnan Province, and the case is still within the appeal period of the first-instance judgment; the judgment has not yet taken effect, and Xiangcai Securities will file an appeal according to the law. Currently, the case remains uncertain. The company urges relevant media to correct erroneous information in a timely manner to avoid misleading investors and causing negative impacts on the company.