Baokang Shiyun-B (02592): Court rules to grant judicial protection to bank accounts opened by Baokang Shiyun Guangzhou with the Industrial and Commercial Bank of China until November 30

According to Zhitong Finance App, Baokangshiyun-B (02592) issued an announcement. On January 6, 2026, Baokang Shiyun Biomedical Technology (Guangzhou) Co., Ltd. (an indirect wholly-owned subsidiary of a company registered in accordance with the laws of the People's Republic of China) received a notice from the People's Court of Huangpu District of Guangzhou issued on December 24, 2025.

In response to an application from Cedar Wealth Management SPC, the court ruled through legal procedures to apply judicial protection to the bank account opened by Kangshiyun Guangzhou with the Industrial and Commercial Bank of China (including a cash balance of approximately RMB 2.55 million in the account as of the date notified by the court) until November 30, 2026.

After consulting its Chinese legal adviser, the company concluded that the legal process stemmed from the arbitration proceedings brought by Cedar Wealth against the company and Diacangshiyun Guangzhou through an application submitted to the Shanwei Arbitration Commission on August 11, 2025. The content of the application concerned that the defendant allegedly paid and owed certain amounts to Cedar Wealth based on certain service agreements to provide the company with corporate, marketing and other services and supplementary agreements relating to payment of related service fees concluded before the date the company's securities were listed on the Stock Exchange on July 3, 2025.

In the arbitration application, Cedar Wealth filed the following claims: (a) the amount paid by the company to Cedar Wealth included: (i) outstanding service fees and other expenses amounting to US$2.05 million; (ii) interest on the alleged outstanding expenses calculated based on the best interest rate for one-year loans announced by the National Interbank Loan Center; and (iii) legal fees and asset preservation insurance costs totaling approximately RMB 1.04 million; (b) Diakang Shiyun Guangzhou was jointly and severally liable for the payment of such claims; and (c) arbitration proceedings The costs will be borne by the defendant.

Since the defendant did not receive any invoices, notices of fees, or claims of alleged outstanding fees prior to the date of delivery of the arbitration application, the Group has actively maintained contact with Cedar Wealth to gather the necessary information and details to give rise to such claims. However, as of the date of this announcement, Cedar Wealth has not provided the Group with further details, so the Board believes that there is insufficient information on the arbitration process to assess the nature and potential impact and consequences of the arbitration process until the Group receives the court notice on January 6, 2026.

The Board is seeking legal advice on the legal process and arbitration process, and will continue to evaluate and monitor its possible legal, operational and financial impact on the Group. As of the date of this announcement, the Board is aware that: (a) these procedures and asset preservation orders have not had a significant adverse impact on the Group's overall business, operations and cash flow; and (b) the Group's business and operations are still normal.

The Group will continue to seek negotiations with Cedar Wealth to explore mutually acceptable settlement possibilities aimed at resolving misunderstandings between the parties concerned, including terminating or withdrawing such procedures and lifting asset preservation orders to protect the overall interests of the company and its shareholders.