China Meheco wins performance compensation lawsuit against West Ancheng

China Meheco (SSE:600056) announced it has received a first-instance civil judgment from the Beijing No. 2 Intermediate People's Court regarding a contract dispute over performance compensation. The court ruled that Tibet Tiancheng Taifeng Pharmaceutical Co., Ltd. (West Ancheng) must pay China Meheco performance compensation of CNY 98,071,672.46, plus interest, within ten days of the judgment becoming effective. Additionally, Xu Panfeng is held jointly and severally liable for West Ancheng's debt, and China Meheco holds priority claim over West Ancheng's 30% equity in Henan General Pharmaceutical Health Industry Co., Ltd. for the debt.

The initial lawsuit, filed by China Meheco, sought performance compensation of CNY 100,631,772.46 from West Ancheng and interest. It also sought repayment of CNY 16,889,100.00 from Xu Panfeng, related to unfinished property deeds, plus interest. The court largely sided with China Meheco's claims, while dismissing West Ancheng's counterclaim for CNY 16,889,100.00 in equity transfer funds from China Meheco. The court also ordered West Ancheng and Xu Panfeng to jointly pay CNY 5,000,000 to Henan General Pharmaceutical Health Industry Co., Ltd.

As of the announcement date, the first-instance judgment is not yet effective, and there remains uncertainty regarding potential appeals and the final outcome of the case. China Meheco will continue to disclose progress on this litigation, advising investors to be aware of investment risks.