Shengda Forestry faces appeal court setback in Xiamen International Bank dispute

Sichuan Shengda Forestry Industry announced a significant development in litigation involving its wholly-owned subsidiary, Guizhou Zhonghongda Energy. The Fujian Provincial High People's Court recently issued rulings, overturning initial judgments by the Xiamen Intermediate People's Court. The appeal court confirmed the invalidity of "Deposit Pledge Contracts" signed between Zhonghongda Company and Xiamen International Bank Xiamen Branch.

Despite acknowledging the invalidity of the contracts, the Fujian High Court supported Xiamen International Bank's defense regarding the statute of limitations. Consequently, Zhonghongda Company's claims for the return of funds, compensation for fund occupation losses, and confirmation of non-liability were dismissed.

As a result of the two-tier judgment, Sichuan Shengda Forestry Industry is now liable for litigation costs totaling 3,244,130.20 yuan. The company stated it would process this in accordance with accounting standards and is actively exploring further legal remedies.