On March 25, Ge Longhui (00162.HK) issued an announcement. Century Jinhua Dingyao, an indirect subsidiary of the company, recently filed a civil complaint with the People's Court of Weiyang District of Xi'an City. Century Jinhua Dingyao received a subpoena from the People's Court of Weiyang District of Xi'an City on March 19, 2024. The basic circumstances of the lawsuit are as follows: (1) Century Jinhua Dingyao requested that the lease agreement and supplementary agreement be terminated on November 27, 2023, and that the lessor be ordered to return RMB 70 million in good faith to Century Jinhua Dingyao and pay interest to Century Jinhua Dingyao from December 5, 2023 to the actual date of return in accordance with the loan market quoted interest rate standards announced by the National Interbank Borrowing Center; and (2) Century Jinhua Dingyao's rental request order The person compensated Century Jinhua Dingyao for the return of the property in the amount of RMB 177,520.8, the amount of maintenance and inspection fees paid for the property was RMB 1,009,700, and the expenses of Century Jinhua Dingyao to fulfill the claim as the plaintiff in terms of litigation costs, maintenance fees, legal fees, etc.

After thorough consideration by the board of directors of the company, it is believed that apart from the expenses incurred during the preparation process, the above lawsuit did not and will not have any significant adverse impact on the financial situation of the Group.