Yunnan Jinggu subsidiary faces new lawsuits, asset freezes

Yunnan Jinggu Forestry announced that its subsidiary, Tangxian Huiyin Wood Industry Co., Ltd. ("Huiyin Wood"), has been served with three new litigation cases. These cases, stemming from private lending disputes involving Huiyin Wood's former actual controllers, amount to a principal of 4.6965 million yuan plus accrued interest.

In addition to the new lawsuits, Huiyin Wood's assets have been subjected to four new property preservation measures totaling 10.0672 million yuan. This includes the freezing of bank accounts and seizure of other assets, bringing the cumulative amount of property preservation and litigation to approximately 115.673 million yuan. This figure represents 121.63% of the company's net assets attributable to shareholders.

Currently, all nine of Huiyin Wood's bank accounts are frozen, and its two production lines for fiberboard and particleboard are halted. This situation is expected to negatively impact the company’s operations and further deteriorate its financial performance in the first half of 2025, raising concerns about its ongoing viability. The company is actively responding to these legal challenges.