New Sparkleroll (00970.HK) announced that, with the consent of the first defendant Shi Qingliu, the company has paid 6.1623 million yuan to Shi Qingliu as the full and final settlement amount for the legal fees incurred by Shi Qingliu in those proceedings.

On the other hand, according to the order of the Hong Kong High Court dated September 16 this year, New Sparkleroll's claim against the second defendant, Swhy Finance (Hong Kong), has been terminated, and the company has paid 0.4 million yuan to Swhy Finance (Hong Kong) as the full and final settlement amount for their legal fees.

New Sparkleroll stated that, after considering all legal documents related to the proceedings, and that the payment of the settlement amount would not have any significant adverse impact on the group's daily business and financial condition, the board of directors believes the settlement amount is acceptable. In addition, the injunction and the proceedings have been concluded.