Jiangsu Guoxin subsidiary wins appeal in ¥2.5 bn trust loan dispute

Jiangsu Guoxin Corporation announced a significant development in litigation involving its controlling subsidiary, Jiangsu International Trust Co., Ltd. Jiangsu Trust, acting as the trustee for a trust project, filed a lawsuit against Guangzhou JiaSui Property Co., Ltd. and Huidong County JiaSuiye Investment Co., Ltd. concerning a financial loan contract dispute.

The Nanjing Intermediate People's Court initially ruled in February 2025, ordering JiaSui Property to repay the ¥2.5 bn principal loan, interest of ¥759 m, and overdue interest, along with penalty fees totaling ¥104,691,375 plus subsequent penalty fees.

JiaSui Property and Huidong JiaSuiye subsequently appealed the decision, specifically seeking to overturn the ruling on appraisal fees totaling ¥28,000. However, the Jiangsu Provincial High People's Court recently issued a civil judgment, which dismissed the appeal and upheld the original judgment.

This litigation pertains to a trust loan where the risk is borne by the trust assets formed by funds delivered by the entrusting party. Jiangsu Guoxin expects that the outcome of this litigation will not materially impact the company's current or future profits.