Shanghai Electric Group Company Limited announced receipt of a first-instance civil judgment in the second of two lawsuits aimed at recovering outstanding amounts from SINOMEC Engineering Group Co., Ltd. over loans originally totaling RMB1 billion extended in 2019-2020.

Key points of the ruling:

1. Payment Obligations • Interest: SINOMEC must pay RMB32.53 million plus compound interest of RMB15.38 million accrued to 30 June 2026 and additional compound interest thereafter at 8.3655% per annum. • Penalty Interest: RMB167.31 million accrued to 29 June 2026, with further penalty interest to be calculated on the outstanding principal at 8.3655% until full settlement. • Legal Fees: RMB0.15 million payable to Shanghai Electric.

2. Collateral Realisation Rights Should SINOMEC default on the above payments, Shanghai Electric may realise pledged equity in Zhongyou Guodian Energy Co., Ltd. and Changtai Electric Co., Ltd. to cover outstanding amounts. Surplus proceeds, if any, revert to the pledgors; shortfalls remain SINOMEC’s liability.

3. Guarantor Liability Zhongji Guoneng Engineering Co., Ltd. is jointly and severally liable for the amounts under items 1-3 and retains the right of recourse against SINOMEC after fulfilment of its obligations.

4. Court Costs Total fees of RMB1.25 million are allocated as follows: RMB0.13 million to be borne by Shanghai Electric and RMB1.12 million jointly by SINOMEC and the guarantors.

Impact Assessment The judgment is subject to appeal and has not yet taken effect, leaving any earnings impact for the current or subsequent reporting periods uncertain. Shanghai Electric will account for the case in line with applicable accounting standards as developments unfold and will update the market in accordance with disclosure requirements.

Investors are advised to exercise caution when dealing in the company’s securities.