Shenzhen SEG: Auction of Property Involved in Litigation of a Controlled Grandchild Company Completed, Affecting Current Period Profit and Loss

Shenzhen SEG announced that its controlled subsidiary's subsidiary, SEG New City, is involved in litigation over a commercial housing sales contract dispute. The Shenzhen Intermediate People's Court ruled to auction 52 properties under SEG New City's name to settle debts. The 52 properties were ultimately jointly won by Tong Fuming and Deng Luping at a total price of RMB 130 million. The buyers have paid the full auction price, and the court has ruled to lift the property seizure and handle the transfer registration. The relevant judgment amounts were already accrued in previous years. This enforcement ruling is expected to increase the company's operating revenue by approximately RMB 124 million and reduce net profit attributable to the parent company by approximately RMB 38 million.