According to the Zhichun Finance APP, USPACE TECH (01725) announced that three subsidiaries of the group (namely Aerospace Satellite Technology Co., Ltd. (Aerospace Satellite), Hong Kong Aerospace Satellite Control Co., Ltd. (Hong Kong Satellite Control), and Hong Kong Aerospace Satellite Data Co., Ltd. (Hong Kong Satellite Data)) received summonses from the Hong Kong Science and Technology Parks Corporation (the plaintiff) on December 9, 2024, based on three independent lawsuits issued on December 6, 2024 by the High Court of the Hong Kong Special Administrative Region.

As stated in the court orders, the plaintiff claims against Aerospace Satellite, Hong Kong Satellite Control, and Hong Kong Satellite Data (including) for the rights of vacant possession of certain properties leased by Aerospace Satellite, Hong Kong Satellite Control, and Hong Kong Satellite Data under leasing agreements (the leasing agreements) located at the Data Technology Center at 5 Jun Chang Street, Tseung Kwan O Industrial Estate, New Territories, Hong Kong, and the Advanced Manufacturing Center at 18 Jun Chang Street, Tseung Kwan O Industrial Estate, New Territories, Hong Kong, along with unpaid rent, management fees, and total expenses amounting to approximately 47.4 million HKD, accrued interest, and other claimed damages for breach of such leasing agreements.

The company is currently seeking legal advice regarding the litigation. The company expects that the litigation will not have any significant adverse impact on the group’s daily operations and financial condition. Despite the ongoing litigation, the group plans to hold a two-day exhibition in Hong Kong showcasing 100 Satellites, with manufacturing for these Satellites currently scheduled for completion in the first quarter of 2025.