Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited have disclaimed responsibility for the contents of a recent supplemental announcement issued by Northeast Electric Development Co., Ltd. (Northeast Electric). According to the announcement, the Company is appealing a first-instance ruling related to a lawsuit filed by Liaoning Trust and Investment Company seeking to invalidate a debt assignment agreement.

Northeast Electric indicates that the first-instance ruling, in the Company’s view, misapplies the statute of limitations for litigation and liability for fault. An appeal was filed with the Shenyang Intermediate People’s Court on October 11, 2025. Should the ruling ultimately require compensation, the amount may represent approximately 18% of the Company’s total assets based on its interim report for the six months ended June 30, 2025. The Company’s cash and cash equivalents stand at RMB10.8 million, against net current liabilities of RMB213.6 million and net liabilities of RMB213.3 million. The announcement underscores that any adverse final judgment may significantly affect the Company’s financial position, though current operations remain unaffected pending the appeal outcome.