WHOLE SHINE MEDICAL’s RMB 361 Million Contract Dispute Case Resumes Enforcement: Over RMB 215 Million in Estimated Liabilities Already Accrued

Source: Announcement of Haochen Medical Technology Co., Ltd. on the Progress of Litigation Involving the Company

DentalGoodNews｜June 18, 2026 - WHOLE SHINE MEDICAL TECHNOLOGY CO.,LTD. (hereinafter referred to as "WHOLE SHINE MEDICAL") issued an announcement stating that the company recently received the (2026) Hu 74 Zhi Hui Fu No. 43 "Enforcement Notice" and "Property Reporting Order" issued by the Shanghai Financial Court, involving the contract dispute case between the applicant for enforcement, Golden Begonia Asset Management Co., Ltd. (hereinafter referred to as "Golden Begonia"), and Zuo Jiahua, Yin Hongwei, and WHOLE SHINE MEDICAL.

According to the announcement, the court requires WHOLE SHINE MEDICAL to immediately fulfill the obligations determined by the (2021) Hu Min Zhong No. 649 judgment upon receipt of the notice. Failure to comply within the specified period will result in compulsory enforcement. The subject matter of this enforcement is RMB 361,220,497.02 (approximately RMB 361 million), with an enforcement fee of RMB 429,698.41 (approximately RMB 429,700). The announcement states that WHOLE SHINE MEDICAL shall bear compensation liability for one-half of the portion of defendant Zuo Jiahua's payment obligations that cannot be satisfied.

According to previous reports by DENTALGOODNEWS (Leading Dental Industry Media, DGN), this case originated from a lawsuit over other contract disputes initiated by Golden Begonia in 2020. The first-instance judgment of the Shanghai Financial Court ordered Zuo Jiahua to pay Golden Begonia a repurchase payment of RMB 362,298,413.97 plus related interest, with Yin Hongwei bearing joint and several liability for the above payment obligations. WHOLE SHINE MEDICAL was ordered to bear compensation liability for one-half of the portion of Zuo Jiahua's obligations that cannot be satisfied. In 2022, the Shanghai Higher People's Court issued a second-instance judgment, dismissing WHOLE SHINE MEDICAL's appeal and upholding the original judgment. Subsequently, WHOLE SHINE MEDICAL applied for retrial, which was rejected by the Shanghai Higher People's Court in June 2023.

Regarding the enforcement process, the equity of Fushun Bank Co., Ltd. held by WHOLE SHINE MEDICAL, with a capital contribution of RMB 227 million, underwent two judicial auctions and one judicial sale during the enforcement process, all of which failed. In June 2024, the Shanghai Financial Court ruled to terminate the current enforcement proceedings.

In terms of financial impact, WHOLE SHINE MEDICAL stated that, based on the principle of prudence, the company had already accrued a provision for estimated liabilities of RMB 215,273,300 for the possible compensation amount and corresponding interest in this case based on the judgment results in the 2022 fiscal year, and has been accruing current interest payable annually starting from the 2023 fiscal year and subsequent years. The company stated that the receipt of the notice to resume enforcement will not have a significant impact on the company's current period profit or post-period profit.

WHOLE SHINE MEDICAL currently primarily conducts its Oral medical services through its controlling subsidiary, Guangdong Delun Medical Group Co., Ltd. (hereinafter referred to as "Delun Medical"). According to the company's previous disclosures, the 51% equity interest in Delun Medical held by WHOLE SHINE MEDICAL remains under judicial freeze.