The first-instance judgment of the lawsuit by Sunxing's subsidiary clarifies the amount of the debt but there is uncertainty in the realization of the result

Recently, Shenzhen Sunxing Lightweight Alloy Materials Co., Ltd. announced the progress of litigation involving its wholly-owned subsidiary, Songyan New Energy Materials Co., Ltd. The case has been ruled in the first instance, with Songyan New Energy as the plaintiff and Dongguan Shanshan Battery Materials Co., Ltd. among the defendants. The amount in question includes a principal payment of RMB 12,102,063.85 and overdue payment losses, with a total of RMB 102,994.59 for case acceptance and preservation fees. The court confirmed the bankruptcy claim amount of Songyan New Energy against Dongguan Shanshan Battery Materials Co., Ltd., rejecting other litigation requests, with related costs to be borne by the defendant. The company has made a full provision for bad debts regarding this matter in 2024, and this ruling will not affect the profit and loss for 2025. The defendant has entered bankruptcy reorganization proceedings, and the outcome of subsequent debt recovery remains uncertain. As of the announcement date, the company and its holding subsidiaries have no other significant litigation or arbitration matters that need to be disclosed