Rongda Technology (09881) was sued by Xiamen Top Electronics in a civil lawsuit. The group denied the plaintiff's accusations

Zhitong Finance App News, Rongda Technology (09881) issued an announcement relating to matters relating to the Group's criminal incidental civil lawsuit brought by a company. The company claimed that its trade secrets were infringed by a natural person. On July 3, 2025, the Company received a civil lawsuit (civil lawsuit) from the Xiamen Intermediate People's Court (Intermediate Court) of Fujian Province on this dispute. According to the civil lawsuit, Xiamen Top Electronics Co., Ltd. (an independent third party of the Company, the “plaintiff” as referred to in the prospectus) has filed a civil lawsuit against the Group and Mr. A, and has sought a court order requesting the Company to stop all actions that infringe on the plaintiff's trade secrets and stop developing, producing, and selling the weighing products the plaintiff alleges infringement. Furthermore, the plaintiff is seeking an order from the Intermediate Court to seek damages (actual damages multiplied by a fine multiplier plus rights protection costs) totaling RMB 199,999,994 from the Company and Mr. A for the alleged infringement and all costs associated with the civil lawsuit. The Intermediate Court will hear the civil lawsuit on July 22, 2025.

The Group denies the accusations made by the plaintiffs. The director believes that the nature of the civil lawsuit is similar to previous incidental civil lawsuits, but after the court rejected all of the plaintiff's claims in a retrial appeal, the plaintiff filed a separate civil lawsuit against the Group and Mr. A. Therefore, in view of the track record period and up to the date of this announcement, the Group carried out business normally with reputable customers, and it is unlikely that a civil lawsuit will have any significant adverse impact on the Group's business, financial situation and operating results.

The Company would also like to draw attention to the fact that the plaintiff has been filing multiple legal claims against the Group over the years, and the plaintiff's claims in the retrial ruling and the retrial appeal ruling were unsuccessful. Despite the plaintiff's unsuccessful claim against the Company, the Company will hire professionals to actively defend the interests of the Company and shareholders in civil lawsuits.

Furthermore, as disclosed in the prospectus, the controlling shareholders have promised to pay off any amount exceeding RMB 9.4 million, and they have also voluntarily extended the ban on the sale of the Company's shares held at the time the listing was completed until the final settlement of legal proceedings in the civil lawsuit. The above commitment shows the determination of the controlling shareholders to protect the interests of the company and shareholders in this regard.