Hong Kong-listed Kangqiao Service Group Limited (abbrev. KANGQIAO SER) disclosed that the Supreme People’s Court (SPC) has dismissed the retrial application filed by its wholly-owned subsidiary, Kangqiao Yueshenghuo Service Group Co., Ltd., concerning the “Second Civil Judgment” linked to disputed loan contracts and a purported promissory letter.

According to the SPC ruling received on 29 August 2026, the Court concluded that: 1) the subsidiary’s evidence alleging invalidity of the loan contracts and the promissory letter did not qualify as new evidence capable of overturning prior findings; 2) arguments relating to connected guarantees and Listing Rules disclosure or approval procedures lacked legal foundation; and 3) the lending bank had completed appropriate review procedures, and any misunderstanding of the letter’s nature was insufficient to prove bad faith.

With the retrial application dismissed, the Second Civil Judgment stands. Kangqiao SER is now taking legal advice on further options under PRC law, including a possible petition to the Henan People’s Procuratorate for civil procuratorial supervision, although management acknowledges outcome uncertainty. Parallel discussions with the bank are being considered to secure “mutually acceptable” terms on the loan and associated collateral to prevent disruption to normal operations.

The company will issue additional announcements on any significant developments and advises shareholders and potential investors to exercise caution when dealing in its shares.