Material Event - Form 8-K

Item 8.01. Other Events

On July 21, 2023, Wenfa Zhuo, a resident of China, commenced a lawsuit in a Chinese court against Chongqing Guanzan Technology Co., Ltd. ("Guanzan"), a China-based subsidiary of BIMI Holdings Inc. (the "Company"), Xiaoping Wang, the former COO and director of the Company, and Li Zhou, the former legal representative (general manager) of Guanzan, for the recovery of an allegedly unpaid referral fee of RMB 10 million (approximately $1.5 million) in connection with the acquisition of Guanzan by the Company. Upon the plaintiff's request, the Chinese court attached a piece of real property (the "Attached Real Property") located in Chongqing, China, owned by Guanzan. As a result of such attachment, Guanzan failed to renew a commercial loan with China Postal Savings Bank (the "Bank") which was secured by the Attached Real Property and matured on December 20, 2023. The Bank notified Guanzan on March 20, 2024 that if the Bank does not receive full payment of the principal and interests of the loan in the amount of RMB 4,938,978.67 (approximately $705,000) within three days, the Bank would commence a lawsuit against Guanzan and suspend all of Guanzan's accounts with the Bank.

Guanzan intends to vigorously defend itself in the lawsuit and explore options to settle with the Bank.