Luenmei Quantum subsidiary ordered to repay 81.6m yuan loan

Luenmei Quantum Company Limited announced that its subsidiary, Shandong Heze Fulin Thermal Technology Co., Ltd. (Fulin Thermal), has been ordered in a first-instance judgment to repay 81.6 million yuan to Tianjin Caison Group Co., Ltd. within ten days of the judgment becoming legally effective. Additionally, Fulin Thermal is liable for doubled interest on any delayed payments and half of the case acceptance fee, amounting to 227,828 yuan.

This litigation stems from Luenmei Quantum's 2019 acquisition of a 66% stake in Fulin Thermal, during which Luenmei Quantum provided a shareholder loan of 158.4 million yuan and Tianjin Caison provided a shareholder loan of 81.6 million yuan, proportionate to their equity stakes. Tianjin Caison initiated the lawsuit, seeking repayment of its loan.

The company emphasized that the judgment is a first-instance decision, currently under appeal and not yet legally effective. Luenmei Quantum plans to exercise its legal rights to protect its interests. The ultimate impact on the company's current or future profits cannot be accurately assessed until a final ruling is made, but the case is not expected to materially affect the company's overall operations.