Kangqiao Service Group Limited disclosed that its wholly owned subsidiary, Kangqiao Yueshenghuo Service Group Co., Ltd., has filed an application on 14 April 2026 with the Supreme People’s Court of the People’s Republic of China, requesting a retrial of a second-instance civil judgment that held the subsidiary liable for RMB473.70 million in principal and related interest.

Key litigation details 1. Disputed liability: The appellate court previously ruled that the subsidiary must repay RMB473.70 million under loan agreements arranged by Henan Chengqiao. 2. Asset enforcement: Approximately RMB212.00 million of the subsidiary’s bank balances are currently subject to judicial enforcement measures. 3. Indemnity commitment: Controlling shareholder and chairman Mr. Song Gewei has undertaken to indemnify the listed company for any losses arising from the judgment.

Grounds for retrial • Misidentification of shareholder relationship: The company argues the appellate court erred in finding that Henan Chengqiao was neither a shareholder nor the de facto controller of the subsidiary. • Scope of corporate guarantee: Kangqiao Service contends the guarantee in question complies with Article 16, paragraphs 2 and 3 of the PRC Company Law, counter to the appellate ruling. • Counterparty due diligence: The company maintains the appellate court wrongly overturned the first-instance finding that the lending bank failed to meet reasonable review obligations and lacked good-faith status. • New evidence: Additional documentation has been submitted indicating the loan agreements may be invalid, which the appellate court allegedly did not examine.

Operational impact Management states the litigation impact is confined to the subsidiary and does not affect other operating entities within the group. The company will provide further updates as material developments occur.

Shareholders and potential investors are advised to exercise caution when dealing in Kangqiao Service shares.