Due to less than half of the cargo being put into production and the final disposal plan for the severely damaged cargo not yet being determined the consignee has not disclosed their estimate of

Due to less than half of the cargo being put into production and the final disposal plan for the severely damaged cargo not yet being determined, the consignee has not disclosed their estimated losses. However, the consignee recently indicated that the extent of the cargo's damage was more severe than initially expected. Therefore, we anticipate that the consignee's claim may be at least the amount of security (RMB 9.5m). Although we do not currently have an analysis result of the cargo, based on our experience, it is unlikely that the severely damaged cargo will result in a total loss