Yunnan Jinggu Forestry subsidiary assets seized and frozen

Yunnan Jinggu Forestry Co., Ltd. [SSE:600265] announced that its holding subsidiary, Tangxian Huiyin Wood Industry, has had assets seized and bank accounts frozen by the Shunping County People's Court following a lawsuit. The seized assets, consisting primarily of finished product warehouses and approximately 45,000 cubic meters of wood products, are valued at an estimated CNY 50.00 million, representing 5.50% of the company’s most recent audited total assets. Additionally, approximately CNY 80,000 in the subsidiary's bank accounts have been frozen. The asset seizure and freezing are a result of a property preservation application filed by plaintiffs Wang Sanquan, Wang Dongxian, and Wang Xinwang in a pending lawsuit against Huiyin Wood Industry. The company cautions investors that the situation could negatively impact Huiyin Wood Industry’s operations and financial results and that any potential judicial disposal of the assets could further impact the company's financial standing. The company also notes its continued risk warning status due to previous financial losses.