CHIHO ENV (00976) announced that, in relation to the substantive consolidated restructuring of its indirect controlling shareholder Loncin Group Co., Ltd., Loncin Holdings Co., Ltd., and Yushang Investment Group Co., Ltd., together with ten other companies connected to the controlling shareholder, which has been proceeding under the supervision of the Fifth Intermediate People's Court of Chongqing, on 20 August 2026, the Chongqing Intermediate Court issued a civil ruling ((2022) Yu 05 Po No. 76-43) to conclude the substantive consolidated restructuring proceedings of the Loncin restructuring companies.

According to the civil ruling, the administrator reported to the Chongqing Intermediate Court that, as of 31 July 2026, all conditions for the full completion of the restructuring plan had been fulfilled, including distributions made to creditors, implementation of debt repayment arrangements, establishment and implementation of the trust plan, transfer of relevant assets under the trust plan, and completion of industrial and commercial change registration by the restructuring entities.

On this basis, the administrator requested the Chongqing Intermediate Court to confirm that the restructuring plan had been fully executed and to conclude the bankruptcy restructuring proceedings.

In the civil ruling, the Chongqing Intermediate Court approved the administrator's request and ordered the conclusion of the restructuring proceedings of the Loncin restructuring companies.

The Chongqing Intermediate Court further ordered that, given that certain claims are currently in a state of escrow or custody, the administrator shall continue to perform its supervisory duties.

The civil ruling took effect on 20 August 2026.

Taking into account that the company is not one of the Loncin restructuring companies and that the company is independent from its controlling shareholder in terms of business, personnel, assets, and finance, the board of directors believes that the conclusion of the restructuring proceedings will not have a material adverse impact on the company's operations and financial position.