Jiangxi Changyun Co., Ltd. Announcement on the Litigation Progress of Its Subsidiaries

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Stock code: 600561 Stock abbreviation: Jiangxi Changyun Announcement No.: Lin 2026-017

Announcement of Jiangxi Changyun Co., Ltd. on the progress of the lawsuit filed by its subsidiary

The board of directors of the Company and all directors hereby guarantee that the contents of this announcement contain no false records, misleading statements, or material omissions, and assume individual and joint liability for the authenticity, accuracy, and completeness of the contents.

Key Matters to Note:

● Stage of the case: enforcement stage

● Procedural status of the listed company’s subsidiary: plaintiff, applicant for enforcement

● Amount involved: factoring receivable principal of RMB 20,000,000 and interest, attorneys’ fees

● Whether it will have a negative impact on the profit and loss of the listed company: as the outcome of the subsequent enforcement of this lawsuit remains uncertain, it is currently not possible to determine its impact on the current-period profit and the profit in subsequent periods of Shenzhen Hu Rong Financial Information Consulting Co., Ltd., the Company’s subsidiary.

I. Basic information of this lawsuit

In order to safeguard the Company’s rights and interests, Shenzhen Hu Rong Financial Information Consulting Co., Ltd. (formerly named Shenzhen Hu Rong Commercial Factoring Co., Ltd., hereinafter referred to as “Hu Rong Company”), a wholly owned subsidiary of Jiangxi Changyun Co., Ltd. (hereinafter referred to as the “Company” or “our Company”), because relevant parties failed to pay the factoring receivable, according to law filed a civil lawsuit with the People’s Court of Futian District, Shenzhen, requesting the defendant Yidu County Fu Xing Real Estate Development Co., Ltd. to immediately pay to Hu Rong Company the factoring financing principal of RMB 20,000,000, together with interest, and attorneys’ fees of RMB 180,000.

On October 22, 2020, Hu Rong Company received a “Notice of Acceptance of a Case” (2020) Yue 0391 Min Chu 10024 issued by the People’s Court of Shenzhen Qianhai Cooperation Zone, and the People’s Court of Shenzhen Qianhai Cooperation Zone had accepted Hu Rong Company’s statement of claim.

The above case was transferred to the Intermediate People’s Court of Ganzhou City, Jiangxi Province for trial by a ruling of the People’s Court of Shenzhen Qianhai Cooperation Zone. On May 5, 2023, Hu Rong Company received a “Civil Judgment” (2021) Gan 07 Min Chu 880 issued by the Intermediate People’s Court of Ganzhou City, Jiangxi Province, which ordered that: the defendant Yidu County Fu Xing Real Estate Development Co., Ltd. shall, within ten days from the date on which the judgment becomes effective, repay to the plaintiff Shenzhen Hu Rong Commercial Factoring Co., Ltd. the loan of RMB 20,000,000; the defendant Yidu County Fu Xing Real Estate Development Co., Ltd. shall, within ten days from the date on which the judgment becomes effective, pay interest to the plaintiff Shenzhen Hu Rong Commercial Factoring Co., Ltd., with interest to accrue and be settled together with the principal; the defendant Yidu County Fu Xing Real Estate Development Co., Ltd. shall, within ten days from the date on which the judgment becomes effective, pay to the plaintiff Shenzhen Hu Rong Commercial Factoring Co., Ltd. an attorneys’ agency fee of RMB 180,000; if the defendant Yidu County Fu Xing Real Estate Development Co., Ltd. fails to perform the debts determined in Items 1, 2, and 3 of the judgment upon maturity, the plaintiff Shenzhen Hu Rong Commercial Factoring Co., Ltd. shall have the right, within the guarantee scope agreed in the contract, to seek priority repayment out of the discounted, auctioned, or sold proceeds of the 10% equity interest in Yidu County Fu Xing Real Estate Development Co., Ltd. held by Zhong Fuyuan {to be subject to the matters recorded in the Equity Pledge Establishment Registration Notice, (No.) (13743117) [as stated in the equity pledge establishment registration notice (In the City Administration) Internal Equity Pledge Establishment Registration No. 2017]}; Zhong Fuyuan, Li Guxing, and Fang Yuan shall, within their respective guarantee scopes, each bear joint and several liability for the debts determined in Items 1, 2, and 3 of this judgment; and all other claims of the plaintiff Shenzhen Hu Rong Commercial Factoring Co., Ltd. are dismissed.

Dissatisfied with the “Civil Judgment” (2021) Gan 07 Min Chu 880 issued by the Intermediate People’s Court of Ganzhou City, Jiangxi Province, Yidu County Fu Xing Real Estate Development Co., Ltd. and Zhong Fuyuan filed an appeal with the High People’s Court of Jiangxi Province.

On October 20, 2023, Hu Rong Company received the “Civil Judgment” (2023) Gan Min Zhong 363 issued by the High People’s Court of Jiangxi Province. The court held that: the appellants’ appeal requests by Yidu County Fu Xing Real Estate Development Co., Ltd. and Zhong Fuyuan cannot be sustained and should be rejected; the facts ascertained in the judgment at first instance were basically clear, and the application of law was correct, and the judgment should be upheld. Pursuant to Article 177, Paragraph 1, Item 1 of the Civil Procedure Law of the People’s Republic of China, the judgment is as follows: reject the appeal and uphold the original judgment. The case acceptance fee for the second instance, RMB 223,985, shall be borne by Yidu County Fu Xing Real Estate Development Co., Ltd. and Zhong Fuyuan. This judgment is a final judgment.

On March 4, 2024, Hu Rong Company received the “Enforcement Ruling” (2024) Gan 07 Zhi 39 issued by the Intermediate People’s Court of Ganzhou City, Jiangxi Province.

The court, based on the filing for enforcement of the “Civil Judgment” (2021) Gan 07 Min Chu 880 issued by the Intermediate People’s Court of Ganzhou City, Jiangxi Province which has already taken legal effect, found that as of now, the judgment debtors Yidu County Fu Xing Real Estate Development Co., Ltd., Zhong Fuyuan, Li Guxing, and Fang Yuan have not performed the obligations determined in the legally effective legal documents. In accordance with the provisions of Article 251, Article 253, Article 254, and Article 255 of the Civil Procedure Law of the People’s Republic of China, and Articles 1, 2, and 26 of the “Provisions of the Supreme People’s Court on Seizure, Detention and Freezing of Property in Civil Enforcement by the People’s Courts,” the ruling is as follows: to freeze and deduct the total bank deposits of RMB 33,000,000 of the judgment debtors Yidu County Fu Xing Real Estate Development Co., Ltd., Zhong Fuyuan, Li Guxing, and Fang Yuan, or to seal, seize, or freeze other property of equal value belonging to the above judgment debtors. This ruling shall be immediately enforced.

For details, please refer to the 2020-056 “Announcement of Jiangxi Changyun Co., Ltd. on the lawsuit involving its subsidiary” published in the “China Securities Journal” and “Shanghai Securities News” on October 27, 2020, and on the website of the Shanghai Stock Exchange; the interim announcement Lin 2023-036 “Announcement of Jiangxi Changyun Co., Ltd. on the progress of the lawsuit filed by its subsidiary” published on May 9, 2023; the interim announcement Lin 2023-065 “Announcement of Jiangxi Changyun Co., Ltd. on the progress of the lawsuit filed by its subsidiary” published on October 21, 2023; and the interim announcement Lin 2024-015 “Announcement of Jiangxi Changyun Co., Ltd. on the progress of the lawsuit filed by its subsidiary” published on April 6, 2024.

II. Progress of this lawsuit

Pursuant to the designation by the People’s Court of Yidu County, Jiangxi Province, based on the enforcement ruling numbered (2024) Gan 07 Zhi 39-1 issued by the Intermediate People’s Court of Ganzhou City, enforcement proceedings were filed in February 2025. The People’s Court of Yidu County issued an enforcement notice to the judgment debtors; the judgment debtors Yidu County Fu Xing Real Estate Development Co., Ltd., Zhong Fuyuan, Li Guxing, and Fang Yuan have not fulfilled the obligations determined in the legally effective legal documents within the prescribed period.

On March 31, 2026, Hu Rong Company received an “Enforcement Ruling” (2025) Gan 0731 Zhi 214 issued by the People’s Court of Yidu County, Jiangxi Province.

During the enforcement process, the court issued a property reporting order to the judgment debtors, investigated through the online enforcement and asset investigation control system and traditional means of asset investigation, issued a restriction on consumption order, and included judgment debtors meeting the conditions into the list of dishonest judgment debtors. Through investigation, it was found that the enforcement target applied for by the applicant for enforcement is RMB 32,795,281.61, and as of March 26, 2026, the amount actually enforced is RMB 0. After exhausting investigation measures, the court found that the judgment debtors have no other property available for enforcement. The court ruled as follows: to conclude this enforcement procedure. The applicant for enforcement has the right to request the judgment debtors to continue fulfilling their debts, and the judgment debtors are obligated to continue fulfilling their debts to the applicant for enforcement. If the applicant for enforcement discovers that there is property available for enforcement held by the judgment debtors, it may apply to the court for enforcement again. A renewed application is not subject to the enforcement limitation period when applying for enforcement. After concluding this enforcement procedure, the court will, in accordance with law, regularly carry out online asset investigation and control of the properties of the judgment debtors; if dispose-able property is found, enforcement will be resumed.

This ruling shall enter into legal effect immediately upon service.

III. Impact of this announcement on the company’s profit for the current period or subsequent periods

As of September 30, 2025, Hu Rong Company has made provision for bad debts for the factoring receivable involved in this lawsuit of RMB 20,000,000 on a single-item basis, with a provision ratio of 100%. Although the judgment in this lawsuit has taken legal effect, the outcome of the subsequent enforcement remains uncertain, and it is currently not possible to determine its impact on the current-period profit and the profit in subsequent periods of Shenzhen Hu Rong Financial Information Consulting Co., Ltd., the Company’s subsidiary.

The Company will continue to monitor the subsequent progress of the above-mentioned case, and promptly fulfill its information disclosure obligations. Investors are kindly reminded to pay attention to investment risks.

This announcement is hereby given.

Board of Directors of Jiangxi Changyun Co., Ltd.

April 1, 2026

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