Baida Group wins retrial, impact on profits limited

Baida Group (SSE: 600865) announced that the Zhejiang High People's Court has rejected a retrial application filed by Hangzhou Haiwei Hotel Management Co. regarding a property lease dispute. The original lawsuit, initiated by Baida in April 2023, concerned unpaid rent and related fees. While this ruling concludes the retrial process, Baida Group cautions that Haiwei is currently undergoing bankruptcy liquidation. The company has already filed claims as a creditor but acknowledges the risk of not fully recovering the outstanding debt. Baida Group states the financial impact of the potential loss will be determined by the bankruptcy asset allocation and accounted for according to accounting standards, with the final amount subject to audit confirmation.