Hesteel litigation concludes: Appeals dismissed, company cleared

Hesteel Company Limited announced on November 6, 2025, that the Hebei Provincial High People's Court has concluded its review of two civil cases, dismissing the appeals and upholding the original judgments. The lawsuits, initiated by Asia United (Hong Kong) International Investment Co., Ltd. in September 2020, had been dismissed by the Shijiazhuang Intermediate People's Court in July 2024, prompting the appeals.

The judgments found in favor of Hesteel and its co-defendants, which included Tangshan Iron and Steel Group Co., Ltd., Shanxi Meijin Huasheng Chemical New Materials Co., Ltd., Tanggang Meijin (Tangshan) Coal Chemical Co., Ltd., and Tangshan Desheng Coal Chemical Co., Ltd. The court ordered Asia United (Hong Kong) International Investment Co., Ltd. to bear the second-instance case acceptance fees.

Huatai United Securities Co., Ltd., China Securities Co., Ltd., CITIC Securities Co., Ltd., and Everbright Securities Co., Ltd., acting as entrusted managers for various Hesteel bonds, issued temporary reports confirming the litigation's conclusion. They stated that the outcome has no impact on Hesteel's financial condition, current profit, or subsequent profits. The entrusted managers will continue to monitor Hesteel's bond principal and interest payments and other matters affecting bondholders.