Petro-king (02178) announced that on June 11, 2024, the defendant (a wholly-owned subsidiary of the company in China) received a civil judgment (judgment) issued by the court on May 31, 2024, concerning the claim. According to the judgment:

(i) The defendant shall pay the plaintiff a total of RMB 12.63 million in technical service fees, along with any accrued interest from November 30, 2023 (rather than the amount of about RMB 28.9 million plus any accrued interest claimed by the plaintiff);

(ii) Reject any other claims made by the plaintiff against the defendant; and

(iii) Reject any counterclaims made by the defendant against the plaintiff.

As of the date of this announcement, the defendant's operation has not been significantly affected by the judgment.

The board of directors believes that since the technical service fees to be paid by the defendant as ordered are fees that are required to be paid in the normal course of business operations and have already been accounted for, the judgment will not have a significant adverse impact on the group's financial position. The group will use its internal resources to settle the payment. As of the date of this announcement, the combined bank balance of the defendant's accounts is approximately RMB 8.2 million, which has been frozen by the court and awaits the outcome and payment of the claim.