On June 7th, Gelunhui reported that China Aerospace (00031.HK) has learned that its wholly-owned subsidiary, Gaoke Property, received a first-instance judgment on May 31, 2024 from the People's Court of Nanshan District, Shenzhen City, Guangdong Province, regarding Gaoke Property's lawsuit against Huabao Run for overdue property management fees. The specific content of the judgment is as follows: Defendant Huabao Run shall pay plaintiff Gaoke Property the total amount of RMB 10,943,922.38 and liquidated damages for overdue property management fees, central air-conditioning maintenance fees, special repair funds, water and electricity charges, etc. within ten days from the effective date of the judgment; Defendant Huabao Run shall pay RMB 110,378.66 to the third party, Commercial Planning Co., Ltd. of Shenzhen Liudaodian, for overdue fees within ten days from the effective date of the judgment. The other litigation requests of plaintiff Gaoke Property are dismissed; and the case acceptance fee of RMB 238,958.44 and property preservation fee of RMB 5,000, totaling RMB 243,958.44, shall be borne by the plaintiff and defendant in the amount of RMB 175,567.44 and RMB 68,391, respectively. Plaintiff has already prepaid all the case acceptance fee and property preservation fee, and the court will return RMB 68,391 to them.

After consulting the opinions of Chinese legal advisors regarding the dismissed litigation requests of Gaoke Property, the company plans to study an appeal on the unsupported part of the first-instance judgment. The company will continue to follow up on various litigations, actively assert and protect its own rights in accordance with the law, and evaluate the impact of such legal proceedings on the company.