Chenming Paper (HKEX: 01812) has issued an announcement detailing a series of new legal proceedings.

From March 31, 2026, to June 11, 2026, the group became involved in 63 new lawsuits, all of which name the company as the defendant. The plaintiffs in these cases are all non-financial institutions. The disputes stem from issues including overdue debts and contract performance disagreements.

The total amount involved in these cases is approximately RMB 103 million, which represents about 11.42% of the company's most recently audited net assets. Among these cases, judgments have been rendered in 10, involving a combined sum of roughly RMB 4.0584 million.

The company has stated that there are no major litigation or arbitration matters where the amount for a single case exceeds 10% of its most recently audited net assets in absolute value, and where the absolute amount surpasses RMB 10 million.

The group is actively addressing these legal matters through methods such as communication, negotiation, vigorous defense, and reaching settlements with creditors. The company will conduct corresponding accounting treatments in accordance with accounting standards and the actual progress of the cases, with the specifics to be reflected in its audited financial reports.

Currently, the company is focused on its operational guidelines of "cost reduction and efficiency improvement, product innovation, and compliance and risk control." It is deepening refined management practices, maintaining stable operations at all production bases, and seeing a continued positive trend in its production and business activities.

Moving forward, the company will continue to implement and refine its plans for cost reduction and efficiency through meticulous control. It aims to optimize its product mix, deepen market expansion, and employ multiple measures to improve its operating cash flow. The company is committed to prudently handling the litigation matters to promote steady and sustainable corporate development.