Huafa subsidiary sues partner for 627 million yuan in real estate dispute

Zhuhai Huazhuo Real Estate Development Co., a subsidiary of Huafa Industrial Zhuhai, has filed a lawsuit against Jilin Tianmao Real Estate Group Co. with the Zhuhai Intermediate People's Court. The suit, filed in November 2025, seeks to recover 627,000,000.00 yuan in funds and associated interest, plus 930,000 yuan for legal fees.

The dispute stems from a cooperation agreement between Huazhuo and Tianmao to jointly establish a target company, which fully owns a project company developing the Huamao Tiancheng International Peninsula Garden project. Huazhuo alleges that Tianmao failed to return funds as per the agreement, despite multiple requests from the project company.

As of the disclosure date, the case is still in its preliminary stages and has not yet been heard. Huafa Industrial Zhuhai stated that the lawsuit's impact on its current or future profits is uncertain, and it will continue to monitor the proceedings. Excluding this case, Huafa Industrial and its subsidiaries have ongoing litigation totaling 1,742,366,400.00 yuan as of November 2025, representing 8.82% of its audited net assets at year-end 2024.