Hainan Rubber receives distribution in litigation, eyes further recovery

Hainan Natural Rubber Industry Group Co. (Hainan Rubber) has received a distribution of 301,059,160.13 yuan from the liquidation of Hainan Huaxiang Industrial Group Co. This payment represents an initial allocation of assets, distributed according to shareholder capital contributions. This development follows a legal battle initiated by Hainan Rubber in May 2020 against Hainan Huayang Investment Group Co. for overdue capital contributions and related penalties.

The litigation progressed through multiple court levels, with Hainan Rubber securing favorable judgments. An appeal by Hainan Huayang was rejected in October 2023. Following these legal victories, Hainan Rubber applied for compulsory enforcement in January 2023, leading to the sealing of Hainan Huayang’s 65% equity in Hainan Huaxiang.

Further progress occurred in June 2025 when Hainan Huaxiang’s liquidation committee auctioned its assets, with Hainan Rubber successfully acquiring equity and vehicles for 410,114,512.23 yuan. Hainan Rubber continues to seek compulsory enforcement against Hainan Huayang’s remaining assets to recover outstanding debts. The impact on Hainan Rubber's profits will be determined by the final enforcement outcome and audit confirmation.