Pu’er Lancang Ancient Tea Co., Ltd. (Stock Code: 6911) announced that on 27 October 2025, its wholly-owned subsidiary, Guangzhou Kangrui Lancang Ancient Tea Co., Ltd., received an arbitration award issued by the Shenzhen International Court of Arbitration. The case originated from a loan contract dated 8 December 2024 for RMB10 million at a 2% monthly interest rate and a 90-day term. The subsidiary did not repay the loan upon maturity, leading the applicant to initiate arbitration.

According to the award, Guangzhou Kangrui is required to repay RMB9,700,424.44 together with overdue interest at an annual rate of 12.4%. The award also obligates Guangzhou Kangrui to cover attorney fees of RMB40,000, preservation-related fees, and a portion of the arbitration fees. Ms. Wang Juan, a former director and senior management of Pu’er Lancang Ancient Tea Co., Ltd., is to bear joint and several liability due to her guarantee on the loan.

The company noted that the borrowed amount was transferred to personal accounts of third parties, and Guangzhou Kangrui did not actually receive funds. Written undertakings have been provided by Ms. Wang and another individual involved, accepting responsibility for settling debts arising from the case. The award has not yet been enforced, and its specific financial impact remains uncertain. The board of directors is coordinating with legal counsel on potential actions, while indicating that the case is not expected to materially affect the company’s operations.