Yunnan Jinggu subsidiary faces lawsuits, asset freeze amid debt pile

Yunnan Jinggu Forestry's controlled subsidiary, Huiyin Wood Industry, is embroiled in multiple litigations, with total current principal of CNY 6.2 million, plus interest, and an additional CNY 8.0938 million in assets frozen. These actions stem from alleged private lending disputes involving Huiyin Wood Industry's former actual controllers, Cui Huajun and Wang Lancun.

The disputes have led to the freezing of nine of Huiyin Wood Industry's bank accounts and the halt of its two production lines for fiberboard and particleboard, making a resumption of operations unpredictable. This situation is expected to negatively impact the parent company's production and operations, further exacerbating a projected decline in half-year operating performance for 2025 and indicating substantial uncertainty regarding its ongoing viability.

In total, Huiyin Wood Industry is involved in 30 legal cases concerning private lending and property preservation, with a cumulative principal of approximately CNY 152.0025 million. This amount represents 159.82% of the parent company’s net assets as of the latest audited period.