New City Development Group Limited (0456) announced that its subsidiaries, Fudi International Holdings Limited, Luoyang Wanheng Real Estate Company Limited, and Kayuan Enterprise Investment Co. Limited, received an arbitral award on 16 January 2026 issued by the Huizhou Arbitration Commission. The award was made in favor of Guangdong Changna Investment Development Company Limited, ordering the respondents to pay damages of RMB23,339,765.69 alongside arbitration costs of RMB292,235.

The award stems from an alleged breach of a Development and Cooperation Agreement signed on 10 August 2023, relating to the rental arrangements of Changliu Industrial Park in Guangzhou, which is owned by the group. It was stated that the group is seeking legal advice regarding the arbitral decision and will proceed in accordance with the relevant listing regulations.

The company indicated that the award does not pose a material adverse impact on its current overall business operations. Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares.