Baiqin Oil Service (02178) subsidiary receives a summons from the court to fully defend the claim

According to the Zhitong Finance App, Baiqin Oil Service (02178) issued an announcement. On January 4, 2024, Shenzhen Baiqin Petroleum Technology Co., Ltd. (defendant), a wholly-owned subsidiary of the company in the People's Republic of China, received a court summons issued by the Shenzhen Nanshan District People's Court on January 3, 2024. As stated in the civil complaint attached to the summons, Xinjiang Zhengtong Oil & Gas Co., Ltd. (the plaintiff), a service provider of the defendant, claimed from the defendant that the defendant paid the plaintiff about RMB 28.9 million in technical service fees for fracking services provided by the plaintiff, along with any accrued interest (claim). The supporting documents submitted by the plaintiff in connection with the claim were then delivered by the court to the defendant on January 18, 2024. The defendant's bank account with a bank balance of approximately RMB 7.3 million has been frozen by the court, pending the outcome of the claim.

According to the legal opinion issued by the defendant's Chinese legal adviser on January 29, 2024 after reviewing the relevant documents of the claim, the defendant believed that it had real defenses (including) the terms of the contract that gave rise to the claim and the amount of the claim; therefore, the defendant will fully defend the claim.