Yunnan Jinggu Forestry subsidiary faces mounting lawsuits, operations halted

Yunnan Jinggu Forestry Co., Ltd. announced that its controlled subsidiary, Tangxian Huibin Wood Co., Ltd., is a defendant in a new lawsuit filed by Gao Aiping and Liu Yan, concerning private lending disputes totaling 4 million yuan in principal plus interest. This latest case is one of several such disputes, contributing to the freezing of nine bank accounts and the halt of two production lines at Huibin Wood, severely impacting its ability to resume operations.

As of the announcement date, Huibin Wood is involved in 31 private lending-related property preservation and litigation matters (two of which have been withdrawn). The total principal amount across these cases is approximately 211.5025 million yuan, representing 222.39% of the company's last audited net assets attributable to shareholders. The company estimates that approximately 189.9684 million yuan of this amount relates to the company, with 169.3684 million yuan from before the acquisition and 20.6 million yuan from after.

The company has established a special team to investigate the authenticity and completeness of the borrowing and has engaged lawyers to actively respond to the lawsuits. It plans to pursue legal recourse to recover funds from responsible parties, acknowledging that the litigation outcomes are uncertain and may negatively affect current and future period profits.