Pu’er Lancang Ancient Tea Co., Ltd. (“Lancang Tea”) reported that the Tianjin No. 1 Intermediate People’s Court issued a first-instance civil judgment on 30 June 2026 concerning the long-running litigation linked to previously frozen bank accounts of its subsidiary Guangzhou Kangrui Lancang Ancient Tea Co., Ltd.

The judgment orders Guangzhou Minghui Technology Co., Ltd. and Guangzhou Kangrui to refund Hebei Hua’en Trading Co., Ltd. RMB30.00 million of goods payments, pay a RMB1.00 million contractual penalty and related interest, and shoulder court acceptance and preservation fees. Lancang Tea, together with Ms. Wang Juan, Mr. Zhang Muheng and Guangzhou Tiansu Information Technology Co., Ltd., was ruled jointly and severally liable for the same obligations.

Lancang Tea and Guangzhou Kangrui intend to appeal, citing unauthorized guarantees issued by Ms. Wang and Mr. Zhang that allegedly harmed the Group’s interests. Both individuals have provided irrevocable commitments to absorb all losses borne by the Group arising from the case.

Should the judgment be upheld, the Group’s exposure could exceed RMB31 million—comprising RMB30.00 million in principal, a RMB1.00 million penalty, accrued interest and litigation-related fees—with the final amount subject to appellate outcomes, enforcement results and recovery efforts from the responsible parties.

Management stated it will pursue all necessary legal measures to protect corporate and shareholder interests and will keep investors informed of material developments. The company cautioned investors to exercise prudence when dealing in Lancang Tea’s shares amid the ongoing legal process.