GDC (08271) has announced that, as disclosed in its May 27, 2025 announcement, Guangdong Global Digital Creative Industry Co., Ltd. (Guangdong GDC) has become insolvent, and its application for bankruptcy liquidation has been accepted by the court. The company holds a 68% equity stake in Guangdong GDC. Following the bankruptcy liquidation application, the company has ceased to have control over Guangdong GDC since June 2025, and Guangdong GDC's financial results are no longer consolidated into the group's financial statements. On March 30, 2026, the company's indirectly wholly-owned subsidiary, Global Digital Media Technology Research (Shenzhen) Co., Ltd. (the Defendant), received a civil summons issued by the Guangzhou Intermediate People's Court. According to the summons, due to certain contractual disputes between Guangdong GDC and Pearl River Film Studio Co., Ltd. (the Plaintiff), Guangdong GDC owed the Plaintiff approximately RMB 129.8 million as of the liquidation date. The Plaintiff demands that the Defendant (as a shareholder of Guangdong GDC), the company's non-executive director and vice chairman Mr. Chen Zheng (as a former senior management member of Guangdong GDC), and certain other former senior management members of Guangdong GDC be held liable for the repayment of approximately RMB 129.8 million owed to the Plaintiff. Additionally, the company's wholly-owned subsidiary, Global Digital China Limited (also a direct shareholder of the Defendant), is required to assume joint liability.