Guolian Minsheng subsidiary faces RMB274m liability in court judgment

Guolian Minsheng Investment Banking, a wholly-owned subsidiary of Guolian Minsheng Securities Co., Ltd., has received a Civil Judgment from the Jinan Intermediate People's Court. The judgment confirms that 1,618 plaintiffs hold creditor rights against defendant Longlive Bio for investment losses totaling RMB274,093,703.5. Guolian Minsheng Investment Banking is to bear joint and several liability up to 5% of this indebtedness, along with notification fees of RMB80,650 and attorney fees of RMB809,000.

The lawsuit stems from alleged misrepresentations by Longlive Bio, with plaintiffs asserting a causal link between these misrepresentations and their financial losses. The court acceptance fee for the case is RMB1,412,271, with Guolian Minsheng Investment Banking also responsible for up to 5% of this amount. Payments are due within 30 days of the judgment's effective date for the compensation and 15 days for the court fee.

The final outcome remains uncertain as parties may appeal to the High People's Court of Shandong Province. Guolian Minsheng Securities states the litigation is not expected to have a material adverse impact on its profits and will disclose further progress.