Shengda Forestry property auction set to settle debt dispute

Sichuan Shengda Forestry Industry Co. Ltd. (Shengda Forestry) announced the progression of a long-standing financing lease contract dispute, stemming from a lawsuit initiated by Huarong Financial Leasing Co. Ltd. The Hangzhou Intermediate People's Court has issued an auction notice for a property owned by Shengda Forestry, located at 26-27 F, No. 42 Donghua Zheng Street, Jinjiang District, Chengdu City, Sichuan Province. The auction is scheduled for Alibaba's Judicial Auction Platform from 10:00 on December 9, 2025, to 10:00 on December 10, 2025. The property's assessed value is 15,411,700 yuan, with a starting bid price of 10,788,190 yuan.

This litigation began with a financing lease contract dispute involving Shengda Forestry and its subsidiary, Yulin Jinyuan Natural Gas Co. Ltd., brought by Huarong Financial Leasing Co. Ltd. HuaBao Trust Co. Ltd., acting as trustee for the Great Wall Hongda Collective Fund Trust Plan, acquired this claim in 2022. The company, currently in the execution phase of the case as the defendant, stated that the auction concerns a long-idle asset.

Shengda Forestry believes the auction will have no significant impact on its assets, liabilities, or daily operations for the current period. If successful, it could help reduce the company's debts and revitalize inefficient assets. However, the company noted that the auction's success and final price are uncertain, and the impact on profits will be determined by audited results. Investors are advised to exercise caution.