Zhidu Holdings Clarifies Overseas Subsidiary Litigation and Chairman Resignation

Zhidu Holdings Responds to Market Concerns with Clarification Announcement

Zhidu Holdings recently issued a formal clarification announcement in response to online media reports concerning litigation involving its overseas subsidiaries, providing detailed explanations on the litigation matters and the resignation of the company's chairman.

Background of Overseas Subsidiary Litigation

According to the announcement, three overseas subsidiaries of Zhidu Holdings were sued in November 2025. As judicial proceedings progressed, the court upheld a jurisdictional objection in February 2026 and ruled to dismiss the plaintiff's lawsuit.

However, the plaintiff subsequently refiled lawsuits against two of the three companies, and these cases remain in judicial proceedings. Zhidu Holdings emphasized several key points in its announcement:

• The litigation is unrelated to the company's day-to-day business operations
• The plaintiff has not specified a monetary amount for damages in the lawsuits
• The matters did not meet the disclosure threshold for interim announcements

The company stated that all business operations are running normally and that there is no material information that should have been disclosed but was not.

Lu Hongda Resigns as Chairman

The announcement also confirmed that Lu Hongda has resigned from his positions as chairman and director of the company. In response to market attention surrounding this personnel change, Zhidu Holdings stated clearly after verification that there are no material matters related to Lu Hongda's resignation that should have been disclosed but were not.

Market Observations and Future Developments

Zhidu Holdings has been actively expanding into AI and digitalization in recent years. The overseas subsidiary litigation and senior management changes have drawn a certain degree of market attention. Based on the company's announcement, management is working to stabilize market expectations through information disclosure.

Notably, although the company stated that the litigation matters did not meet the disclosure threshold for interim announcements, the cases involving the refiling of lawsuits against two overseas subsidiaries are still ongoing, and subsequent judicial outcomes warrant continued monitoring. Investors should pay close attention to the following:

• The final rulings on the lawsuits involving the two overseas subsidiaries
• Subsequent corporate governance arrangements following the chairman's resignation
• Whether the company's core business operations remain stable

Currently, Zhidu Holdings maintains that all company operations are running normally. However, against the dual backdrop of overseas legal risks and management restructuring, the market will continue to closely monitor the company's subsequent developments.