HUAJIN INTL HOLDINGS (02738) has announced that two of its subsidiaries have been included on the list of persons subject to enforcement due to certain debt disputes, primarily related to failures in arranging cargo deliveries and payments under financial leasing arrangements. The total amount involved in the litigation is approximately RMB 1.3 billion, with an outstanding balance of about RMB 16 million as of April 30, 2026. Both subsidiaries, along with the company's Executive Director and Board Chairman Mr. Xu Songqing, and the legal representatives of the two subsidiaries, who are also the company's Executive Director and CEO Mr. Chen Chunnin, have been subject to consumption restrictions since November 25, 2025. As the borrowers failed to repay the debts according to the relevant repayment agreements, the court has initiated enforcement procedures against the relevant debtors, including Mr. Xu and Mr. Chen, and issued consumption restriction orders against them. These restrictions took effect from the enforcement date stated in the orders and will be lifted once the individuals fulfill the obligations set out in the effective legal documents. As of the date of this announcement, the aforementioned consumption restriction orders remain in effect. The group has been making its best efforts to pay substantial progress payments to the creditors, and Mr. Xu and Mr. Chen have informed the company that they are actively negotiating with various creditors to reach more favorable settlement arrangements and repayment plans. Based on the information currently available to the company, it is expected that settlement agreements will be reached with the relevant creditors by the end of August 2026. The Board believes that the company's business operations remain normal. As of the date of this announcement, the Board is not aware of any material adverse impact from the above matters on the group's daily operations, financial condition, or the ability of Mr. Xu and Mr. Chen to perform their duties as directors. Furthermore, the consumption restriction orders only affect the personal consumption behavior of these individuals and will not cause any disruption to the overall daily business of the group. Additionally, as far as the company is aware, several subsidiaries are also involved in other debt disputes. These matters are still ongoing, and management is actively communicating with the relevant parties to reach settlement agreements regarding these issues. The Board is aware that the above matters may see further developments and will continue to closely monitor the situation, informing the company's shareholders and potential investors of any updates in a timely manner. The Board will also continuously assess whether these matters constitute inside information for the company or create any disclosure obligations under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of Hong Kong Law) and Rule 13.09 of the Listing Rules, and will issue further announcements as necessary.