Tongde Chemical and its subsidiaries are involved in a 75 million yuan financial leasing contract dispute, and the case is awaiting trial.

Recently, Shanxi Tongde Chemical Co., Ltd. and its wholly-owned subsidiaries Tongde Technology Innovation and Tongde Explosives received a summons from the Pudong New Area People's Court in Shanghai. The case of a dispute over a financial leasing contract filed by Changjiang United Financial Leasing Co., Ltd. will be heard on November 10th. The plaintiff has determined the amount of money involved in the case to be 75,086,103.28 yuan. The lawsuit requests that Tongde Technology Innovation pay rent, overdue interest, default interest, legal fees, etc., and that Tongde Chemical and Tongde Explosives assume joint and several liability. The lawsuit stems from a financial leasing and lease-back business conducted in July 2024, where the defendant failed to pay the rent as agreed, constituting a breach of contract. Since the case has not been tried, the final outcome and the impact on the company's profits are uncertain. The company will actively defend itself and disclose progress in a timely manner.