Since we learned that the other party's goods have been produced, we have communicated with the factory multiple times to request the documents. However, the factory claims that the document information is still being organized and asks us to communicate with their designated contact person - the insurance broker - to request them. We contacted their insurance broker again this afternoon, and they claimed that they are still in internal communication and will disclose the documents to us later. We will continue to communicate with the other party and will promptly report any updates once we receive the documents.

In addition, regarding the issue of actual losses, we noticed that the assay results from the consignee showed a low protein solubility for some of the soybean meal. However, during the inspection, the consignee reported that most of the products have been sold and only a portion of the goods have quality complaints, without mentioning any discounted sales. Therefore, we expect that the losses related to product quality may not be significant. If this is the case, the actual loss will not exceed the amount of security (RMB 9.5 million).


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