Core Viewpoint - The funds in the special account for the issuance of convertible bonds by Chengdu Mengsheng Electronics Technology Co., Ltd. have been partially frozen due to a legal dispute with Sichuan First Construction Engineering Co., Ltd. [1][2] Group 1: Account Information - The frozen account has a balance of 83,245,566.72 yuan, with 4,679,530.29 yuan frozen [3][4] - The account is held at CITIC Bank Chengdu Wuhou Branch [3] Group 2: Reason for Freezing - The freezing of funds is a result of a dispute over a construction contract, where Sichuan First Construction is seeking property preservation through the court [4][5] - The frozen amount represents 1.59% of the net proceeds from the convertible bond issuance and 1.40% of the company's audited cash as of December 31, 2024 [4][6] Group 3: Company Actions and Legal Proceedings - The company is actively gathering evidence and preparing to defend itself in court [4][5] - A property preservation replacement application has been submitted to the court, which has been accepted [4][6] Group 4: Impact of Freezing - The frozen funds are not expected to significantly impact the company's operations or the implementation of investment projects, as the amount is relatively small [5][6] - The funds in the special account are specifically for the "Research and Production Center for Electronic Countermeasure Equipment" project [5][6] Group 5: Resolution of Freezing - As of July 25, 2025, the frozen funds have been released and the account is back to normal usage [6] - The company continues to monitor the situation and fulfill its disclosure obligations [6]

Core Viewpoint - Chengdu Mingsheng Electronics Technology Co., Ltd. has announced that a portion of its convertible bond fundraising account has been frozen by the Sichuan Tianfu New District People's Court due to a dispute with Sichuan First Construction Engineering Co., Ltd. regarding a construction contract [1][2]. Group 1: Financial Impact - The frozen amount of 4,679,530.29 yuan represents 1.59% of the net amount raised from the convertible bonds and 0.29% of the company's audited net assets as of December 31, 2024 [2][4]. - The frozen funds account for 1.40% of the company's audited cash holdings as of December 31, 2024, and 2.80% of the cash holdings as of the end of the first quarter of 2025 [2][4]. - The remaining balance in the account is 78,566,036.43 yuan, indicating that the majority of the funds remain accessible for project implementation [2][3]. Group 2: Legal Proceedings - The court's freezing of funds is a procedural measure in response to a lawsuit filed by Sichuan First Construction Engineering Co., Ltd. regarding the payment of project warranty funds [2]. - The case has been filed but has not yet gone to trial, and the company is actively gathering evidence and preparing to defend its position [2][4]. - The company has submitted a request to the court for the replacement of the frozen assets and has received acceptance of this application [2]. Group 3: Operational Impact - The frozen funds are part of a dedicated account for the "Electronic Countermeasure Equipment Research and Production Center Construction Project," and the company asserts that the freezing will not significantly impact the project's implementation or the company's normal operations [3][4].