Hainan Rubber advances in CNY 106m legal battle

China Hainan Rubber Industry Group (SSE:601118) announced progress in its legal battle to recover CNY 106,252,287.81 from Hainan Huaxiang Real Estate Group for overdue contributions and associated late fees. The case, which has been ongoing since 2020, has now entered the execution phase, with the court initiating compulsory liquidation of Hainan Huaxiang's assets. A key development is the upcoming auction of Hainan Huaxiang's equity holdings in four companies, plus one vehicle, scheduled for June 26-27, 2025, on an online platform, with a total assessed value of CNY 585,877,874.61 and a starting bid of CNY 410,114,512.23. The outcome of the auction and its impact on China Hainan Rubber's profits will depend on the execution of the judgment and auditor verification.