Petro-King Oilfield Services Limited disclosed that the Shenzhen Intermediate People’s Court has issued a final civil ruling on the long-running service-fee dispute involving one of its subsidiaries.

The court ordered the subsidiary (the “Defendant”) to: • Settle technical service fees of RMB16.63 million, plus interest accruing from 30 November 2023, no later than 24 May 2026. • Pay court acceptance fees of RMB0.11 million to the original court and RMB0.07 million to the appellate court by 21 May 2026.

All other claims brought by the plaintiff were rejected, and the Defendant’s counterclaims were also dismissed.

Management stated that the RMB16.63 million liability had already been accrued in the ordinary course of business, and settlement will be funded from internal resources. Accordingly, the ruling is not expected to exert a material adverse impact on the Group’s operations or financial position.

The company confirmed that approximately RMB28.90 million of the subsidiary’s bank balances remain frozen pending payment. Upon fulfillment of the court-ordered amounts, the subsidiary intends to apply for the release of these restricted deposits.

According to Petro-King’s PRC legal advisers, while the plaintiff may seek a retrial within six months of the ruling’s effective date, the likelihood of the court accepting such an application is assessed as “less likely.”

The company will release further announcements should there be any significant developments and urges shareholders and potential investors to exercise caution when trading its securities.