Fanyuan International (02516) received a court summons

Zhitong Finance App News, Fanyuan International (02516) issued an announcement. On December 19, 2025, the board of directors of the company learned that the group received a subpoena from the Hangzhou Intermediate People's Court of Zhejiang Province on December 18, 2025, ordering Hangzhou Fanyuan International Logistics Co., Ltd., a subsidiary of the company, and 2 Hangzhou Fanyuan employees (1 of whom had left the job) to go to the Hangzhou Municipal People's Court at 9:30 a.m. on December 24, 2025 to file a crime of smuggling common goods.

After communication between the board of directors and the company's Chinese legal adviser, the case involved cross-border e-commerce import customs clearance and logistics services carried out by Hangzhou Fanyuan from July 2017 to June 2018. During the above period, a customer from Hangzhou Fanyuan suspected of underreporting imports, and the head of Hangzhou Fanyuan's import business department and subordinate employees at the time did not fulfill their responsibility for inspection and control. The relevant authorities believe that this move has caused a certain loss in national tax revenue, and use this to pursue the legal liability of the relevant parties.

The board of directors has sought legal advice from the company's Chinese legal counsel on this case. The Chinese legal adviser believes to the board of directors that:

the case did not involve current executives and directors of the company and/or Hangzhou Fanyuan; and

If the court ultimately determines that Hangzhou Fanyuan is responsible, it will only fine Hangzhou Fanyuan. It is estimated that the maximum fine is several million yuan (the exact amount will be determined by the court).

The company is currently unable to predict with certainty the outcome of this case. According to the above opinion of the Chinese Legal Counsel, the Company does not expect the outcome of this case to have any significant adverse impact on the Group's financial results.