CHINA CBM (08270) announced that its wholly-owned subsidiary in China, Nuoxin (Xianxian) Mechanical Engineering Materials Co., Ltd. (the "Enforced Party"), has received an enforcement ruling from the Hebei Province Xianxian People's Court (the "Court"). The ruling stipulates that an industrial land parcel and the buildings thereon, located in Xianxian County, Hebei Province and held under the Enforced Party's name, are to be delivered to Hebei Xiongyue Qicheng Trading Co., Ltd. (the "Enforcement Applicant") to offset debts totaling RMB 18.8 million related to relevant litigation. The aforementioned land and buildings are valued at RMB 25 million. After the Enforcement Applicant pays the price difference of RMB 6.2 million, with the Enforced Party as the beneficiary, into a court-designated account, ownership and corresponding other rights to the said land and buildings will be transferred to the Enforcement Applicant. The Company and the Enforced Party are currently obtaining relevant professional legal opinions and will actively safeguard the Group's rights and interests. On April 10, 2015, a then-supervisor of the Enforced Party provided a guarantee in the name of the Enforced Party for a "Loan Contract" (No. 20150410), signing the contract and affixing the Enforced Party's company seal without authorization. Both the lender and the borrower under this Loan Contract were independent third parties to the Company. The Company also has reason to believe that the Loan Contract involved forgery. The Enforcement Applicant/Lender subsequently sued the Enforced Party in February 2016 based on this Loan Contract, demanding that the Enforced Party assume the guarantee liability. In 2021, the Hebei Provincial High People's Court ruled that the Enforced Party must pay the lender principal amounting to RMB 4,924,547.95 plus relevant interest. The Enforced Party applied for protest by the Hebei Provincial People's Procuratorate, which was accepted. As of the date of this announcement, the Supreme People's Procuratorate is reviewing the civil judgment, and relevant documents are undergoing a document authentication process. Considering the potential impact of the relevant case on the Group, Mr. Wang Zhongsheng, Chairman of the Company, has committed to bearing any related losses incurred by the Group from this case. In this regard, the Board of Directors believes the relevant case will not have a material adverse impact on the Group's financial position or daily operations. As of the date of this announcement, the relevant case is still ongoing, and the Company will actively protect the legitimate rights and interests of the Group based on professional legal advice.