Novo Zhiyuan (688315.SH): Filing a lawsuit against the US Department of Defense to reverse its decision to identify the company as a “Chinese military enterprise”

Zhitong Finance App News, Novo Zhi Yuan (688315.SH) issued a voluntary announcement stating that recently, the company and its US subsidiary Novogene Corporation Inc. have filed a lawsuit against the US Department of Defense in the US District Court of the District of Columbia (“court”).

The company firmly believes that the US Department of Defense's decision to list the company as a “Chinese military enterprise” (“CMC” for short) under section 1260H was wrong, lacked factual basis, and lacked the support of legal standards under applicable regulations and case law. To protect the interests of the company's customers, partners, employees and shareholders, the company has applied to the court, including but not limited to: (1) declaring that the US Department of Defense's decision to identify the company as CMC violates the US Administrative Procedure Act and the due process provisions of the Fifth Amendment to the US Constitution, and ruling to revoke the determination; (2) order the removal of the company from the 1260H list; and (3) prohibit the US Department of Defense from enforcing, enforcing, or otherwise validating the determination. The company also filed a preliminary injunction motion to prevent the finding from continuing to cause irreparable damage during the litigation period.

The inclusion of a company on the 1260H list does not mean that the company has been placed on any sanctions or export control lists. This certification has had an impact on the company's cooperation with some US customers, and the company is actively taking countermeasures; up to now, the company's overall business operations have been carried out normally. The company will continue to monitor the progress of litigation and promptly fulfill its obligation to disclose information in accordance with applicable laws and regulations.