Haohua Energy litigation enters second trial phase

Beijing Haohua Energy Co., Ltd. (SSE:601101) has announced that its legal proceedings concerning Shanxi Zhongbo Real Estate Development Co., Ltd. have progressed to a second trial phase. The case, originally filed by Haohua Energy, involves a claim that Shanxi Zhongbo breached an equity transfer agreement related to Western Energy Development Co., Ltd., in which Haohua Energy holds a 60% stake and Zhongbo holds 40%. Haohua Energy sought damages of 108.52 million yuan plus legal fees in the initial lawsuit, but the first trial ruled against Haohua Energy. The company has appealed to the Beijing Higher People's Court. The outcome of the litigation remains uncertain, and the company states that it is currently unable to determine the impact on current or future profits. Haohua Energy will continue to disclose updates as the case progresses.