Shenzhen SEG wins $900m loan repayment lawsuit, recovery remains uncertain

Shenzhen SEG Co., Ltd. has received a final judgment from the Shenzhen Intermediate People's Court of Guangdong Province regarding its lawsuit to recover a RMB900 million loan from Shenzhen International Consumer Electronics Show & Exchange Center Co., Ltd. (CEEC). The court upheld the initial ruling, dismissing CEEC's appeal and ordering CEEC to pay the outstanding principal and interest. CEEC is also responsible for the RMB5,561 in second-instance case acceptance fees.

The dispute originated from a RMB900 million working capital loan provided by Shenzhen SEG to CEEC, approved in October 2017, with a five-year term and an annual interest rate of 4.9%. The loan matured on April 3, 2023, and CEEC failed to repay the principal and interest, leading Shenzhen SEG to initiate legal proceedings.

While the judgment is final, the company notes that the recoverability of the associated debt and its impact on current and future profits remain uncertain. Shenzhen SEG stated it will continue to assert its legal rights and fulfill its information disclosure obligations as required.