Luenmei Quantum subsidiary's fundraising account frozen over coal dispute

Luenmei Quantum’s subsidiary, Shandong Heze Fulin Thermal Technology, has had its fundraising account frozen by the Cao County People's Court. This action stems from a lawsuit filed by Jining Hongchang Economic and Trade, seeking payment of RMB 3,137,516.21 for coal supplied since March 2025, plus interest. The frozen account, held at Industrial Bank Shenyang Youth Street Branch, currently holds RMB 6,731.23.

The lawsuit, with Shandong Heze Fulin Thermal Technology as the defendant, is in the "case accepted" phase and has not yet gone to trial. Luenmei Quantum states it cannot yet determine the impact on its current or future period profits. The company is actively litigating to protect its interests and will disclose further developments.

The acquisition of Shandong Heze Fulin Thermal Technology's 66% equity and subsequent investment in project construction was a Luenmei Quantum fundraising initiative, which concluded in April 2025. While the frozen account has not significantly affected normal operations to date, the company is implementing measures to unfreeze the account and safeguard its assets.