China Light Textile City (600790) Announces First-Instance Civil Judgment Regarding Subsidiary’s Legal Case

Details of the First-Instance Judgment

The Shaoxing City Keqiao District People’s Court issued the civil judgment on September 23, 2026, under case number (2025) Zhe 0603 Min Chu 22730. The primary dispute involves the plaintiff, the Management Committee of Qixian Subdistrict, Keqiao District, Shaoxing City, and the defendant, Shaoxing Baseball Future City Development and Construction Co., Ltd.

According to the court’s ruling, the defendant is required to pay the plaintiff the outstanding expropriation compensation within ten days from the date the judgment takes effect. The court also ordered the defendant to pay 15,449,624.93 RMB in overdue interest. For the period starting December 1, 2025, until the date of full payment, interest must be calculated at 1.5 times the one-year Loan Prime Rate (LPR) as published by the National Interbank Funding Center.

The court also stipulated that failure to meet these payment obligations within the specified timeframe will result in double interest payments for the delayed period, in accordance with Article 264 of the Civil Procedure Law of the People’s Republic of China. The defendant is responsible for all case acceptance fees and property preservation application fees associated with the litigation.

Status of the Subsidiary and Ongoing Litigation

The subsidiary, Shaoxing China Light & Textile City International Logistics Center Co., Ltd., participated in the proceedings as a third party. The case was originally accepted by the Keqiao District Court on December 10, 2025. Following an application from the plaintiff, the court previously issued a property preservation order under (2025) Zhe 0603 Zhi Bao 6128, which has already been executed.

Impact on Financial Performance

The company stated in its announcement, numbered Lin 2026-031, that it is currently unable to determine the specific impact of this judgment on its current or future profits. The assessment remains uncertain due to the nature of the first-instance ruling, as the parties involved may choose to appeal the decision. The final outcomes of subsequent legal proceedings and the actual enforcement of the judgment may change.

The Board of Directors of Zhejiang China Light & Textile City Group Co., Ltd. confirmed that they are monitoring the situation closely. The company intends to take necessary measures to protect its interests and those of its investors. Shareholders have been advised to remain aware of potential investment risks as the legal process continues.

Next Steps in the Legal Process

The judgment is currently in the post-ruling phase where involved parties may initiate an appeal. As of the September 29, 2026, announcement, the company has not confirmed whether any party has officially filed an appeal or if the judgment has reached its final effective date. Further disclosures regarding the enforcement or any changes to the legal status of the case will be provided by the company in accordance with regulatory requirements for listed entities.