In October 2022, China Guangfa Bank Co., Ltd. Dalian Branch (CGB Dalian), acting as the creditor, provided a loan of RMB 93 million (the CGB Loan) to the company's indirectly wholly-owned subsidiary, Yida Construction Group Co., Ltd. (Yida Construction), which acted as the debtor and pledgor. The loan carried an interest rate of 4% and had a maturity date of May 27, 2027.

The security measures for the loan included: (1) The company's subsidiaries, Dalian Yida Meijia Real Estate Development Co., Ltd. (Dalian Meijia), Dalian Software Park Zhongxing Development Co., Ltd. (Dalian Zhongxing), and Dalian Software Park Rongda Development Co., Ltd., provided mortgage guarantees using approximately 8,000 square meters of public buildings and approximately 8,500 square meters of properties, along with a second-priority mortgage guarantee on 22,600 square meters of land at Hekou Bay; (2) The company's subsidiary, Yida Development Co., Ltd., Dalian Zhongxing, and Dalian Meijia provided joint and several liability guarantees, and Yida Construction provided a pledge guarantee on a portion of its accounts receivable.

As of January 6, 2026, Yida Construction failed to repay the most recent installment of the loan principal and interest owed to CGB Dalian, resulting in a loan default; the outstanding principal balance of the CGB Loan was RMB 78 million.

As disclosed in the company's 2025 interim report, as of June 30, 2025, the Group had failed to repay the principal, interest, and agreement fees for borrowings totaling RMB 6.445 billion by their respective scheduled repayment dates (Borrowing Defaults).

Several default events, alongside the Borrowing Defaults, resulted in borrowings totaling RMB 5.107 billion for the Group as of June 30, 2025 (excluding the Borrowing Defaults) (Triggered Default Amount) becoming immediately repayable if demanded by the lenders.

As of November 30, 2025, the company estimated that the failure to repay related loans by their maturity dates resulted in cross-default amounts of RMB 4.98 billion; these cross-defaults are included within the total figures for the aforementioned Borrowing Defaults and Triggered Default Amount, and the current loan default has not triggered any new cross-defaults.

The company's Board of Directors hereby informs the company's shareholders and potential investors that the aforementioned loan default constitutes a relevant debt obligation default.

As of the date of this announcement, both parties are still actively negotiating matters concerning the loan repayment.