SILVER GRANT (00171) has announced that the company has received civil complaints issued by the Guangdong Province Guangzhou Intermediate People's Court. Claimant A has filed a civil complaint (Complaint A) against (1) Beijing Donghuan; (2) Winner Property; (3) Guangdong Zhuguang; (4) the Company; and (5) Mr. Zhu (collectively referred to as Defendant A) for alleged breach of an entrusted loan agreement (Agreement A). Claimant A alleges that since January 20, 2024, Beijing Donghuan has failed to repay the entrusted loan according to the terms of Agreement A. Consequently, Claimant A asserts that Beijing Donghuan has breached Agreement A and must immediately repay the outstanding principal along with all accrued interest, default interest, and other amounts, while the other parties in Defendant A (excluding Beijing Donghuan) are each liable for corresponding guarantee obligations (Claim A).

Claimant B has filed a separate civil complaint (Complaint B) against (1) Beijing Donghuan; (2) Winner Property; (3) Guangdong Zhuguang; (4) the Company; and (5) Mr. Zhu (collectively referred to as Defendant B) for alleged breach of another entrusted loan agreement (Agreement B). Claimant B alleges that since January 20, 2024, Beijing Donghuan has failed to repay the entrusted loan under Agreement B. Therefore, Claimant B asserts that Beijing Donghuan has breached Agreement B and must immediately repay the outstanding principal along with all accrued interest, default interest, and other amounts, while the other parties in Defendant B (excluding Beijing Donghuan) are each liable for corresponding guarantee obligations (Claim B, together with Claim A referred to as the Claims).

The amount claimed by Claimant A includes (i) outstanding principal of RMB 1.78 billion; (ii) unpaid interest of approximately RMB 323 million due up to November 28, 2025; (iii) overdue principal fees of approximately RMB 20.91 million; (iv) overdue interest fees of approximately RMB 56.157 million; (v) commission of approximately RMB 15.14 million and additional fees of approximately RMB 6.731 million; and (vi) default additional fees of approximately RMB 376 million, totaling approximately RMB 2.578 billion.

The amount claimed by Claimant B includes (i) outstanding principal of RMB 100 million; (ii) unpaid interest of approximately RMB 18.047 million due up to November 28, 2025; (iii) overdue principal fees of approximately RMB 538,000; (iv) overdue interest fees of approximately RMB 3.373 million; (v) commission of approximately RMB 300,000; and (vi) default additional fees of approximately RMB 20 million, totaling approximately RMB 142 million.

The final amounts for the Claims will depend on the court's final judgment. The Company is currently in negotiations with Claimant A and Claimant B regarding a settlement plan. Should a settlement plan be agreed upon by all parties, the Company will make an announcement at the appropriate time. The Company will engage legal advisors in the People's Republic of China to handle these claims as necessary.