Kangqiao Service Group Limited disclosed that an enforcement ruling dated 29 April 2026 from the Intermediate People’s Court of Zhengzhou has led to the seizure of RMB214.50 million in bank balances and related interest held by its wholly owned subsidiary, Kangqiao Yueshenghuo Service Group Co., Ltd. An additional RMB0.02 million in enforcement proceeds was collected, and four vehicles registered under the subsidiary’s name were seized but remain unavailable for disposal due to lack of control.

The ruling relates to a prior Second Civil Judgment that deemed a purported promissory letter legally enforceable, holding the subsidiary liable for RMB473.70 million plus accrued interest. After asset investigations, the court found no further enforceable assets and ordered termination of the current enforcement procedure. Nevertheless, the lending bank retains the right to pursue the outstanding debt, and the subsidiary remains obligated to fulfill its repayment duties.

Kangqiao Service states that, based on information to date, the enforcement actions are not expected to materially affect the Group’s overall business operations. The company is seeking legal advice on the ruling and will provide further updates as developments occur. Shareholders and potential investors are advised to exercise caution when dealing in the company’s shares.