ST Communications announced that the company was subject to another risk warning in August 2020 due to the original actual controller's breach of guarantee. The relevant guarantees and repayment responsibilities have been lifted in 2021, but the 2020 internal control audit report issued a negative opinion, and the warning continues to be implemented. In 2022, it was discovered that the original actual controller used printing in violation of regulations. The amount of money involved in the Dalian Dinghua arbitration was 306.3 million yuan. The 2023 arbitration results determined that the company was responsible within a certain range, and enforcement has not yet been completed. The company sued the original actual controller and appealed after losing the lawsuit in the first instance. The case is in the second trial. The company will continue to mitigate risks and disclose progress on a monthly basis.

ST Communications announced that the company was subject to another risk warning in August 2020 due to the original actual controller's breach of guarantee. The relevant guarantees and repayment responsibilities have been lifted in 2021, but the 2020 internal control audit report issued a negative opinion, and the warning continues to be implemented. In 2022, it was discovered that the original actual controller used printing in violation of regulations. The amount of money involved in the Dalian Dinghua arbitration was 306.3 million yuan. The 2023 arbitration results determined that the company was responsible within a certain range, and enforcement has not yet been completed. The company sued the original actual controller and appealed after losing the lawsuit in the first instance. The case is in the second trial. The company will continue to mitigate risks and disclose progress on a monthly basis.