Beijing Xunzhong Communication Technology Co., Ltd. (XUNZHONG, HKEX: 02597) has released supplemental details on the lawsuit first disclosed on 2 June 2026, confirming the scope of a court-ordered asset preservation totaling RMB40.00 million.

• Scope of preservation – The Beijing court’s order authorises the freeze of the Group’s bank deposits or equivalent assets up to RMB40.00 million. – Six corporate bank accounts have been frozen. – An additional preservation measure, effective 20 May 2026, restricts disposal of XUNZHONG’s entire equity interest in its wholly owned subsidiary Beijing Zhongmai Communication Technology Co., Ltd. The restriction neither affects legal ownership nor day-to-day operations, cash flows or project execution at the subsidiary.

• Financial exposure – External counsel estimates the most probable damages at no more than RMB2.62 million. – In an extreme scenario, exposure is capped at the preserved amount of RMB40.00 million. – Management believes the measures will not materially affect consolidated revenue, operating profit or overall financial position.

• Litigation status – The first court hearing took place on 17 June 2026; judgement is pending. – A dedicated internal task force and external PRC counsel are managing the defence and evidence collection.

XUNZHONG will issue further announcements on material developments. Shareholders and potential investors are advised to exercise caution when dealing in the company’s securities.