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China Evergrande announced on the Hong Kong Stock Exchange on the evening of August 5 that on March 22, 2024, the liquidator initiated legal proceedings in the High Court of the Hong Kong Special Administrative Region (High Court) in the name of the company against three defendants, namely Xu Jiayin, the company's former CEO Xia Haijun and the company's former chief financial officer Pan Darong. The lawsuit gradually developed to join the remaining four defendants, namely Xu Jiayin's spouse or former spouse Ding Yumei and three entities related to Xu Jiayin and Ding Yumei.

In the lawsuit, the Company seeks to recover from the seven defendants, among other things, approximately $6 billion in dividends and compensation paid by the Company based on financial statements it claims were misstated for the fiscal years ended December 31, 2017 through December 31, 2020.

The Liquidators (on behalf of the Company) obtained various injunctions based on their claims in the Action, restraining Hui Ka Yin, Ding Yumei and Xia Haijun from disposing, selling or reducing the value of their global assets beyond the relevant prescribed limits. The injunctions were first issued in Hong Kong on 24 June 2024 against Hui Ka Yin and Xia Haijun, and were gradually extended to include Ding Yumei. The writs and Hong Kong injunctions in relation to the Action were previously subject to confidentiality orders issued by the Hong Kong High Court, which were lifted on 2 August 2024.

The legal proceedings in this lawsuit are ongoing and there is currently uncertainty as to the likelihood of a successful claim and the amount that the Company may ultimately recover. The Liquidators will publish further announcements on the above matters in due course in accordance with the requirements of the Listing Rules.

The Company's shares will be suspended from trading from 10:18 a.m. on Monday, January 29, 2024, and will continue to be suspended from trading from 10:18 a.m. on Monday, January 29, 2024.Suspension, until further notice.