China Everbright Limited (CHINA EB LTD, 00165) disclosed that it received a first-instance civil judgment on 18 August 2026 from the Fifth Intermediate People’s Court of Chongqing Municipality regarding the long-running equity transfer dispute involving Ying Li International Real Estate Limited.

The judgment orders China Everbright to pay RMB1.37 billion in outstanding equity transfer consideration within 15 days after the ruling becomes effective, plus default interest at 5% per annum accruing from 18 April 2019 until full settlement. Including interest and allocated court costs, the aggregate exposure is approximately RMB1.88 billion, equivalent to less than 10% of the company’s audited net assets of HK$32.14 billion as at 31 December 2025.

Other claims lodged by the plaintiff against China Everbright and co-defendants were dismissed. Of the total first-instance court and preservation fees of RMB9.42 million and RMB0.01 million respectively, China Everbright is liable for RMB9.00 million, while the plaintiff bears RMB0.42 million.

The company, the plaintiff and other defendants retain the right to appeal to the High People’s Court of Chongqing Municipality within the statutory period. China Everbright is currently consulting legal counsel and has not finalised its grounds of appeal. Until the appeal window closes and any appeals are adjudicated, the judgment remains ineffective.

Management acknowledges that, if upheld in full, the payment would materially affect consolidated financial statements; however, it does not anticipate a material adverse impact on daily operations or overall solvency. The company pledges to update the market on further developments in accordance with regulatory requirements.

Shareholders and potential investors are advised to exercise caution when dealing in CHINA EB LTD securities.