To all employees of NINGKE, our partners, and all friends who care about and follow the development of NINGKE:

On July 14, 2026, the company received relevant litigation documents served by the Beijing Higher People’s Court. The plaintiff has brought suit against five natural persons, including Wang Zhizhou, as well as several legal entities, including the Institute of Microbiology of the Chinese Academy of Sciences, and has also named the company and Zhongke Xincai as defendants, bringing the total number of defendants to ten. The plaintiff alleges that the aforementioned defendants jointly infringed upon its trade secrets related to the “industrial-scale production technology for long-chain dicarboxylic acids via biofermentation,” and seeks substantial joint and several damages from all ten defendants.

In response to this litigation, the company hereby informs all employees, partners, and all those who care about and follow the company’s development of the relevant circumstances, and makes the following solemn statement:

I. The company’s lauric acid technology originates from lawful and compliant sources.

The strains used by the company for the large-scale production of lauric acid, the methods for strain preparation, and the core technologies related to fermentation, extraction, and purification were all legally acquired in 2017 through a technology transfer from the Institute of Microbiology, Chinese Academy of Sciences. The scope of this technology transfer encompassed patent application rights, proprietary technologies, and trade secrets; the transaction was conducted in full compliance with applicable procedures, at a fair consideration, and the company has duly fulfilled its legal disclosure obligations.

The Institute of Microbiology, Chinese Academy of Sciences, is one of China’s leading academic institutions in the field of microbiology. Since the 1970s, it has been conducting research on the biofermentation technology for long-chain dicarboxylic acids. Through the dedicated efforts of several generations of researchers, it has established an independent, comprehensive, and self-reliant research system and a robust intellectual property framework. The technologies acquired by the company are clearly owned and legitimately sourced, with no infringement of third-party trade secrets.

II. There exists no technical cooperation relationship between the Company and the other defendants.

Except for the aforementioned technology licensed from the Institute of Microbiology, Chinese Academy of Sciences, our company has no technical cooperation, licensing, or technology transfer relationships with any other defendants in this case, nor have we obtained from any other defendant any strains, strain‑preparation methods, or production technologies—including fermentation, extraction, and purification—related to the manufacture of lauric acid.

III. The company’s production and operations are proceeding normally.

Since the completion of the company’s bankruptcy reorganization in 2025, its production and operations have remained stable, with output steadily increasing, a robust order book, and marked improvements in product quality and supply reliability. At the same time, all employees deeply value the hard-won positive momentum, and the company will continue to stay firmly on course, eliminate distractions, and sustain the strong corporate culture of proactive ambition, bold innovation, and a commitment to achieving results.

The company hereby solemnly commits that it will, as always, safeguard product quality and ensure the continuity of supply, thereby protecting the legitimate rights and interests of all customers and preserving the integrity of its relationships with suppliers and partners. The company is fully confident and capable of addressing this litigation and ensuring the continued stable operation of the enterprise.

IV. The company has established a dedicated task force and is actively pursuing counterclaims and seeking compensation.

The company attaches great importance to this litigation and has assembled a dedicated legal team to mount an active defense. It is maintaining close communication with the Institute of Microbiology of the Chinese Academy of Sciences and will, in accordance with the law, take all necessary legal measures to resolutely safeguard the legitimate rights and interests of the company and all its shareholders. At the same time, the company believes that this litigation has already had an adverse impact on its corporate reputation and public image. The company hereby declares that it will firmly counter any improper acts that infringe upon its reputation and corporate image, and will, in accordance with the law, actively file appropriate counterclaims and seek compensation.

The fragrance of the plum blossom arises from bitter cold; a tribute to every dreamer who walks alone in the stillness before dawn.