Forestry firm's subsidiary embroiled in CNY 40.7m lawsuit

Yunnan Jinggu Forestry announced that its holding subsidiary, Tangxian Huiyin Wood Industry, is involved in litigation with claims totaling CNY 40.7 million, plus interest. The cases, initiated by Wang Sanquan, Wang Dongxian and Wang Xinwang, have been accepted by the Shunping County People's Court. In response to the lawsuits, the court has ordered the seizure of Huiyin Wood Industry's finished product warehouse, including inventory valued at approximately CNY 50 million, and has frozen bank accounts holding about CNY 800,000. While the outcome remains uncertain pending court proceedings, Yunnan Jinggu Forestry has established a special working group and retained legal counsel to address the situation and protect the interests of the company and its shareholders.