Sanai Health Industry Group Company Limited (Sanai Health) received a final civil judgment from the High People’s Court of Beijing on 14 May 2026, concluding a multi-year finance-lease dispute and imposing a joint liability of RMB120.18 million.

Key judgment points

1. Payment obligation affirmed • Outstanding principal under the finance-lease agreement: RMB59.32 million • Accrued interest: RMB3.12 million • Default interest: RMB53.98 million • Default payment: RMB2.78 million • Legal fees: RMB0.80 million • Preservation insurance fees: RMB0.18 million

Total confirmed liability (Litigation Amount): RMB120.18 million.

2. Parties held liable • Sanai Health, Lin Ouwen and Lin Min are jointly responsible for the Litigation Amount. • They may seek recourse from Fujian Sanai during the latter’s winding-up proceedings after settling the debt.

3. Other rulings • The earlier judgment of the No. 4 Intermediate People’s Court of Beijing was dismissed. • All other claims from the plaintiff were rejected. • The decision is final, with no further appeal allowed.

Financial impact and next steps

• Cash position: Management stated that existing cash resources are sufficient to cover the RMB120.18 million outflow. • Balance-sheet effect: Cash and net assets will decrease; the company is assessing the exact impact on 2026 consolidated statements. • Prior auditor qualification: No provisions had been booked for this litigation in previous years due to insufficient audit evidence. • Recovery efforts: After payment, Sanai Health intends to pursue compensation from other defendants to mitigate losses.

No other major litigation or arbitration matters require disclosure at this time. The company will continue to update shareholders in accordance with Hong Kong Listing Rules.

Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares.