On June 27, 2024, the court held a hearing on the legal action brought by Man Sang Int'l (00938) and considered the claims made by all parties. The court ordered that a judgment be made on another date determined by the court.

As of the date of this announcement, the court has not made any judgment on the legal action. The parties to the litigation may continue to negotiate in order to achieve a friendly settlement. Chongqing Huan Shi will continue to actively negotiate with lenders to resolve disputes and revise loan agreements in a friendly manner.

Based on available information, the company believes that the legal action has not had any urgent and significant adverse impact on the Group's business operations, and the group will have sufficient financial resources to resolve the dispute.